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NEW QUESTION 151
Which of the following is the calculation for price objective using the vertical count method? (Note: X is the multiplication symbol in this question)
- A. Price level of the lowest box (for up counts) of the base X number of columns of the base X reversal size
- B. Price level of the lowest box (for up counts) X number of boxes in the reversal columns X reversal size
- C. Price level of the lowest box (for up counts) of the base + (number of columns of the base X reversal size)
- D. Price level of the lowest box (for up counts) + (number of boxes in the reversal columns X reversal size)
Answer: D
NEW QUESTION 152
Which of the following is considered a reversal pattern in candlestick charting?
- A. Hanging man
- B. Falling three methods
- C. Rising three methods
- D. Windows
Answer: A
NEW QUESTION 153
Which of the following places the cycles in time length order?
- A. Alpha/beta, lunar, seasonal, presidential and Kondratieff
- B. Alpha/beta, presidential, seasonal, lunar, and Kondratieff
- C. Kondratieff, presidential, alpha/beta, seasonal and lunar
- D. Lunar, presidential, seasonal, alpha/beta and Kondratieff
Answer: A
NEW QUESTION 154
The only effective method of diversifying a portfolio is by including asset classes with ________ correlation to stocks such as cash, foreign exchange or commodities.
- A. meaningful
- B. positive
- C. low/negative
- D. moderately positive
Answer: C
NEW QUESTION 155
Identify the following assumption under the correlation coefficient:
- A. Normality
- B. Outliers and homoscedasticity
- C. All of the above
- D. Linearity
Answer: C
NEW QUESTION 156
__________ is used to calculate the relative volatility of the current portfolio compared to the benchmark by calculating the annualized return less the risk-free return and then divided by beta.
- A. Sharpe ratio
- B. Calmar ratio
- C. Sortino ratio
- D. Treynor ratio
Answer: D
NEW QUESTION 157
Which is NOT true of the three advancing white soldiers' pattern?
- A. Each real body opens within or near the prior session's real body
- B. Each candle should have a long upper shadow
- C. It is composed of three white candles with successively higher closes
- D. It is a gradual and steady rise
Answer: B
NEW QUESTION 158
What is the bearish counterpart to the Piercing Line candlestick pattern?
- A. 3 Black Crows
- B. Dark Cloud Cover
- C. Hanging Man
- D. Shooting Star followed by an Inverted Hammer
Answer: B
NEW QUESTION 159
A system in which the investor must be able to withstand a long series of losses.
- A. Pyramiding
- B. Parabolic System
- C. Martingale Betting System
- D. Directional Move System
Answer: C
NEW QUESTION 160
Which of the following is NOT true of chart patterns?
- A. Trading techniques found in trading literature may be a cause of repeated patterns
- B. A price chart is a representation of human behavior
- C. Quantitative studies have shown a direct relationship between market psychology of behavior and chart formations
- D. Speculators' habits have recurring impacts on markets and knowledge of this fact can be used to interpret chart patterns
Answer: B
NEW QUESTION 161
In point and figure theory, triple-tops and triple-bottoms, when breached:
- A. Frequently leads to a consolidation phase
- B. Suggest a failure in the longer term pattern
- C. Will lead to a stronger directional move
- D. Lead to smaller continuation patterns
Answer: C
NEW QUESTION 162
___________ is used for comparing the long-term performance of one system against another.
- A. Treynor Ratio
- B. Beta
- C. Sharpe Ratio
- D. Calmar ratio
Answer: D
NEW QUESTION 163
Which of the following BEST describes equity market performance during the presidential election cycle:
- A. Market has a below average year during first year of president's term, posts its strongest returns in the second year and reasonably strong returns during the pre-election and election years
- B. Market has its strongest year during first year of president's term, posts its worst returns during the pre-election year and slightly negative returns in election years
- C. Market has an above average year during first year of president's term, posts negative returns during the pre-election year and its strongest returns in election years
- D. Market has a below average year during first year of president's term, posts its strongest returns during the pre-election year or in the election year
Answer: D
NEW QUESTION 164
Standard deviation is:
- A. The square root of the variance
- B. An inferential statistic which measures symmetry around the mean
- C. The covariance of two securities
- D. A descriptive statistic which defines the central tendency
Answer: A
NEW QUESTION 165
Which of the following is the short-term trading cycle that tends to influence most commodity markets?
- A. 12-day
- B. 10-day
- C. 28-day
- D. 19-day
Answer: C
NEW QUESTION 166
Prior to a market top, what would one expect to see in a VIX reading?
- A. Generally low VIX levels, as there is often complacency among traders prior to tops
- B. Increasing VIX levels, as more investors are adding protective measures
- C. An oversold VIX level, given a decrease in long term S&P futures contracts.
- D. An overbought VIX level, given an increase in long term S&P futures contracts.
Answer: A
NEW QUESTION 167
What would be the price objective for a head and shoulders pattern with a neckline at 63, top of the first shoulder at 72, top of the head at 96 and top of the second shoulder at 78?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: B
NEW QUESTION 168
Which of the following is an INCORRECT interpretation of the candlestick piercing pattern?
- A. The greater the penetration into the price levels of the prior day's real body, the greater predictive power
- B. It is preceded by a market uptrend
- C. It is the opposite of the dark cloud cover
- D. It is a bullish reversal pattern
Answer: B
NEW QUESTION 169
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