Breakouts from support or resistance levels, patterns, or bands A. usually signal a trend change. B. are highly profitable signals C. will retest the previous boundary about 75 % of the time. D. more often than not reverse and fail

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Breakouts from support or resistance levels, patterns, or bands
A. usually signal a trend change.
B. are highly profitable signals
C. will retest the previous boundary about 75 % of the time.
D.
more often than not reverse and fail
Drawbacks of technical analysis include which of the following?
A.
It usually requires detailed knowledge of the financial instrument under analysis.
B. It identifies changes in trends only after the fact.
C. Deviations from intrinsic value can persist for long periods.
Which of the following is NOT an EMH assumption?
A. Investor errors are uncorrelated.
B. Arbitrage forces prices to rational levels.
C. Volatility is a function of information arbitrage.
D.
Investors are rational.
թվով
Volume
Which of the following patterns resonate with the price action highlighted within the green rectangles marked
'A' & 'B'?
16
29 06
015
A
Jul 2015
7664
13 20 27ll
03 10 17 24 31
Aug 2015
A. Bullish Engulfing & Shooting Star
B. Piercing Line & Hammer
C. Bullish Engulfing & Hanging Man
D. Piercing Line & Evening Star
08 14 21 28 05
Sep 2015
12 19
Oct 2015
26
POOR
B
-22.00
- 21.00
- 20.00
-19.00
-18.00
- 17.00
-16.00
15.00
<
14.00
13.00
12.00
11.00
10.00
Million
20
10
13
02
Nov 200319
14
15
Transcribed Image Text:Breakouts from support or resistance levels, patterns, or bands A. usually signal a trend change. B. are highly profitable signals C. will retest the previous boundary about 75 % of the time. D. more often than not reverse and fail Drawbacks of technical analysis include which of the following? A. It usually requires detailed knowledge of the financial instrument under analysis. B. It identifies changes in trends only after the fact. C. Deviations from intrinsic value can persist for long periods. Which of the following is NOT an EMH assumption? A. Investor errors are uncorrelated. B. Arbitrage forces prices to rational levels. C. Volatility is a function of information arbitrage. D. Investors are rational. թվով Volume Which of the following patterns resonate with the price action highlighted within the green rectangles marked 'A' & 'B'? 16 29 06 015 A Jul 2015 7664 13 20 27ll 03 10 17 24 31 Aug 2015 A. Bullish Engulfing & Shooting Star B. Piercing Line & Hammer C. Bullish Engulfing & Hanging Man D. Piercing Line & Evening Star 08 14 21 28 05 Sep 2015 12 19 Oct 2015 26 POOR B -22.00 - 21.00 - 20.00 -19.00 -18.00 - 17.00 -16.00 15.00 < 14.00 13.00 12.00 11.00 10.00 Million 20 10 13 02 Nov 200319 14 15
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