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Question 1 of 10
1. Question
In candlestick charts what are the thin vertical bars called and what do the thin vertical bars represent?
Correct
The thin vertical bars are called the shadows, which reflect the price extremes of the trading session. The upper shadow is called the shadow above the real body; the shadow underneath the real body is called the lower shadow.
Incorrect
The thin vertical bars are called the shadows, which reflect the price extremes of the trading session. The upper shadow is called the shadow above the real body; the shadow underneath the real body is called the lower shadow.
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Question 2 of 10
2. Question
Using the concepts learnt during the construction of the candlestick charts what is the outcome for the given situation below:
If the opening price of the stock equals the low price for the trading session:Correct
Individual candlesticks can potentially take on an assortment of interesting sizes. If the stock’s opening price equals the low trading session price, there will be no lower shadow on that day. Equally, if the protection closes for the day at its high level, there will be no upper shadow.
Incorrect
Individual candlesticks can potentially take on an assortment of interesting sizes. If the stock’s opening price equals the low trading session price, there will be no lower shadow on that day. Equally, if the protection closes for the day at its high level, there will be no upper shadow.
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Question 3 of 10
3. Question
What type of scales should be used to plot the prices to represent it graphically?
Correct
In general, price units are plotted on the stock chart’s vertical axis. The analyst shall decide the scale to be used, or the difference between certain price units. Two types of scales are commonly used: an integer scale, and a semi-logarithmic scale.
Incorrect
In general, price units are plotted on the stock chart’s vertical axis. The analyst shall decide the scale to be used, or the difference between certain price units. Two types of scales are commonly used: an integer scale, and a semi-logarithmic scale.
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Question 4 of 10
4. Question
What is the key point that makes point and figures chart different from the other charts that you have studied?
Correct
The point-and-figure chart documents price data using a methodology that is somewhat different from line, bar, and candlestick charts. Point-and-figure charts only account for price change. Volume is excluded; and while time can be annotated on the map, it is not an integral part of the graph.
Incorrect
The point-and-figure chart documents price data using a methodology that is somewhat different from line, bar, and candlestick charts. Point-and-figure charts only account for price change. Volume is excluded; and while time can be annotated on the map, it is not an integral part of the graph.
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Question 5 of 10
5. Question
Keeping in mind Box Size Concepts, what happens to the amount of price history, and the chart size?
Correct
Gradually, as the size of the box increases, the price history becomes smaller and the chart is squeezed to the left, as fewer columns are needed. Eliminating the noise makes the chart more useful for traders or investors interested in longer periods and activities.
Incorrect
Gradually, as the size of the box increases, the price history becomes smaller and the chart is squeezed to the left, as fewer columns are needed. Eliminating the noise makes the chart more useful for traders or investors interested in longer periods and activities.
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Question 6 of 10
6. Question
What is the primary use of derivatives in the Derivative Markets? Select the best possible solution.
Correct
The term derivative describes a financial contract, also called the underlying, that “derives” its value from some other investment vehicle. The primary use for derivatives is to hedge against the underlying risk of failure or to gamble with high leverage. Apart from the risk of loss from the hedge or decreasing value of speculation, hedging, and speculation both take on additional risks such as counterparty risk.
Incorrect
The term derivative describes a financial contract, also called the underlying, that “derives” its value from some other investment vehicle. The primary use for derivatives is to hedge against the underlying risk of failure or to gamble with high leverage. Apart from the risk of loss from the hedge or decreasing value of speculation, hedging, and speculation both take on additional risks such as counterparty risk.
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Question 7 of 10
7. Question
Which of the following does not come under the factors/condiions of the futures contracts?
Correct
Futures contracts that are traded in the futures markets are contracts in which the buyer and seller agree to trade at specific terms at a specific future date. Future markets are sometimes referred to wrongly as commodity markets rather than as a practical definition from historical experience.
Incorrect
Futures contracts that are traded in the futures markets are contracts in which the buyer and seller agree to trade at specific terms at a specific future date. Future markets are sometimes referred to wrongly as commodity markets rather than as a practical definition from historical experience.
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Question 8 of 10
8. Question
Given the situation where the horizontal lines bunch together, sometimes overlapping at the same price level what effect does it make to the support and the resistance lines regarding the concepts used in trend analysis?
Correct
Where those horizontal lines bundle together, a support or resistance zone sometimes overlaps at the same price level. The more horizontal lines there are inside, this zone is usually stronger. In other words, the more times the price level has stopped earlier progress or enabled earlier falls, the greater the potential resistance or support would become.
Incorrect
Where those horizontal lines bundle together, a support or resistance zone sometimes overlaps at the same price level. The more horizontal lines there are inside, this zone is usually stronger. In other words, the more times the price level has stopped earlier progress or enabled earlier falls, the greater the potential resistance or support would become.
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Question 9 of 10
9. Question
Which of the following is not a method that is used to determine the reversal point?
Correct
The more significant the point of reversal, the greater is the amount of support or resistance. There are different ways of defining an important point of reversal. Following are the methods that a reversal point:
(a) DeMark or Williams Method
(b) Percentage Method
(c) Gann Two-Day Swing Method
(d) High Volume MethodIncorrect
The more significant the point of reversal, the greater is the amount of support or resistance. There are different ways of defining an important point of reversal. Following are the methods that a reversal point:
(a) DeMark or Williams Method
(b) Percentage Method
(c) Gann Two-Day Swing Method
(d) High Volume Method -
Question 10 of 10
10. Question
What are the predetermined limits are called when a percentage change in the Dow Jones Industrial Average is reached, the exchange closes down all trading for a limited time?
Correct
When set thresholds, or circuit breakers, are exceeded based on a percentage increase in the Dow Jones Industrial Average, the exchange stops all trading for a limited period of time.
Incorrect
When set thresholds, or circuit breakers, are exceeded based on a percentage increase in the Dow Jones Industrial Average, the exchange stops all trading for a limited period of time.