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Which of the following is a CORRECT interpretation of the shooting star pattern?

A.

It is even more bearish than the gravestone doji candle

B.

Shooting stars in charts, as in life, are omens of good fortune

C.

The color of the real body is of utmost importance to its significance

D.

It is a bearish reversal pattern

Which of the following is the MOST important thing to keep in mind in attempting to find a perfect indicator?

A.

Indicators do not take into account trading costs

B.

Indicators optimized for the past often do not work in the present

C.

Indicators are frequently so complex to create as to be of little use in making trading decision

D.

Indicators usually give conflicting trading advice

Which of the following is NOT true of the rising and falling three methods patterns?

A.

They are continuation patterns

B.

It starts with a long candle is followed by three short candles of the opposite color

C.

The final day is another long candle of the opposite color of the three preceding small candles

D.

The pattern consists of a single candle

Which of the following BEST characterizes the Theory of Contrary Opinion?

A.

When virtually everyone takes the position that the market is headed in a certain direction, there is no one left to push the trend any further

B.

Always trade against the prevailing trend

C.

The future can be extrapolated based on present trends

D.

Fundamental analysis is always wrong

Which of the following is a proper technical usage of MACD indicators?

A.

Trendline analysis can be used with MACD

B.

MACD crossover rules are different than other crossover rules

C.

MACD histograms are best used to initiate new positions contrary to the price trend

D.

When the slower MACD line is above the faster line, the MACD histogram will be above zero

Which of the following is an INCORRECT interpretation of the candlestick piercing pattern?

A.

It is a bullish reversal pattern

B.

The greater the penetration into the price levels of the prior day's real body, the greater predictive power

C.

It is the opposite of the dark cloud cover

D.

It is preceded by a market uptrend

According to the raw performance statistics which of the following statements predicts the correct when the performance of a broadening pattern at its best and its failure rate?

A.

At best, the performance of an expanding pattern is average, and its rate of failure is above average

B.

At best, the performance of an expanding pattern is average, and its rate of failure is below average

C.

At best, the performance of an expanding pattern is above average, and its rate of failure is above average

D.

At best, the performance of an expanding pattern is below average, and its rate of failure is above average

Prior to a market top, what would one expect to see in a VIX reading?

A.

Increasing VIX levels, as more investors are adding protective measures

B.

An overbought VIX level, given an increase in long term S&P futures contracts.

C.

Generally low VIX levels, as there is often complacency among traders prior to tops

D.

An oversold VIX level, given a decrease in long term S&P futures contracts.