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Which of the following is most likely to occur when the overall market is deeply oversold and on the verge of reversing?

A.

Lagging groups fail to confirm new lows

B.

Leading groups fail to confirm new lows

C.

Relative strength of lagging groups begins to improve

D.

Leading groups make new lows and accelerate to the downside

Which of the following is not a rule used in the statistical analysis done using a normal distribution?

A.

Two-thirds of the outcomes will lie above within one standard deviation of the mean

B.

95% of the outcomes will lie within two standard deviations from the mean

C.

Two-thirds of the outcomes will lie below within two standard deviations of the mean.

D.

Two-thirds of the outcomes will lie either above or below within one standard deviation of the mean

Technicians refer to the speed of price movement as:

A.

Volume

B.

Trend

C.

Slope or momentum

D.

Ratio of two prices

What is the proper use of long-term charts versus daily price charts?

A.

Long-term charts are more useful for making trading decisions

B.

Daily price charts allow for a thorough trend analysis

C.

Long-term charts allow for a better assessment of the price trend

D.

Daily price charts allow for a better assessment of the price trend

Which is historically the strongest three-month period for the U.S. equity markets?

A.

January, February and March

B.

March, April and May

C.

June, July and August

D.

October, November and December

Adam Green, a portfolio manager, is making a presentation to a prospective client. Green says that as a new portfolio manager, he made an average annual rate of return of 40% in the last two years at his previous firm

and that based on this, he can guarantee a 40% return to the client. Which of the following statements is in accordance with Standard III(D), Performance Presentation?

A.

Implying that he can guarantee a return.

B.

Stating his past performance as long as it is fact.

C.

Imputing his past performance to future performance.

D.

Implying that he can guarantee a return based on just 2 years of performance.

The bias under which, when an event has not occurred recently, the event is perceived as having zero or negligible probability of occurring in future, is categorized as:

A.

Saliency bias

B.

Framing bias

C.

Sunk-cost bias

D.

Anchoring bias

Which is the CORRECT interpretation of the candlestick umbrella pattern?

A.

They can be bullish or bearish depending on the market

B.

They are bearish after a rally

C.

They are called hammers after a downtrend

D.

All of the above

Which of the following is a true statement according to Elliott Wave Theory?

A.

A complete bull market cycle is made up of eight waves, three waves up followed by five waves down

B.

A trend divides into three waves in the direction of the next longer trend

C.

Corrections always take place in five wave patterns

D.

The two types of simple corrections are zigzags and flats

Which of the following would be a valid trading interpretation of top chart patterns?

A.

Find a market with a long consolidating base and high volatility

B.

Liquidate positions at prior major resistance points, top formations or the break of a major support line

C.

Sell whenever a major support level is tested but not breached

D.

Sell when there is a major price retrenchment in a bull market