Question 1

Which of the following is the BEST volume indicator for analysis of futures trading?

Options :

A : Open interest

B : Contract volume

C : Total volume

D : Breadth

Answer: C

Question 2

Which of the following are the three basic tenets of Elliott Wave Theory, in the CORRECT order of importance?

Options :

A : Price, momentum and volume

B : Price, pattern and volume

C : Waves, alternation and reversals

D : Pattern, ratio and time

Answer: D

Question 3

This chart type integrates volume directly into the price bar:

Options :

A : Equivolume

B : VWOP

C : Renko

D : Ichimoku Cloud

Answer: A

Question 4

Which of the following is one of the advantages of computerized trading systems?

Options :

A : Computerized trend following systems are profitable in all types of markets

B : Computerized systems improve the interpretation of complex trading patterns

C : Computerized trading systems remove the human emotion element

D : All of the above

Answer: C

Question 5

Which of the following point and figure trading techniques limits risk compared to more basic trading rules?

Options :

A : Buy or sell as soon as a new column is created on the chart

B : Close out your trade on the second reversal back in the direction of the original signal

C : Take small consistent profits, but allow large, windfall profitable positions to run

D : Buy or sell on pullbacks after initial trade signal

Answer: D

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