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 is true of Bollinger Bands?

Options :

A : The bands are based on the moving averages of prices

B : The bands are based on moving averages of prices plus or minus a standard deviation factor

C : When price equals the upper band it is considered bullish

D : When prices are above the upper band they are considered to be in oversold territory

Answer: B

Question 3

How can one identify the existence of a cycle?

Options :

A : Remove price trend

B : Switch time frames

C : Use only period extremes

D : None of the above

Answer: A

Question 4

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

Question 5

Counterattack lines are formed when:

Options :

A : a doji breaks a moving average

B : a dumpling top fails with an abandoned baby pattern

C : when opposite colored candles have the same close

D : When same-colored candles have the same close

Answer: C

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