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Question 1 of 10
1. Question
While trading price errors should be eliminated to produce correct results, which of the following is not an example of that leads to trading errors?
Correct
When a price error occurs for the trading day at a high or a low, the error is especially alarming as it affects regular measurements of averages and oscillators using peaks and lows. Therefore it is very critical that any data used in the charting process is extremely “clean” and accurate. Other data errors can occur, besides trading errors, through stock splits, dividends, offers, and distributions.
Incorrect
When a price error occurs for the trading day at a high or a low, the error is especially alarming as it affects regular measurements of averages and oscillators using peaks and lows. Therefore it is very critical that any data used in the charting process is extremely “clean” and accurate. Other data errors can occur, besides trading errors, through stock splits, dividends, offers, and distributions.
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Question 2 of 10
2. Question
In the commodities markets, what is the result of incorrect calculation of the time and price linkage between contracts is called?
Correct
In commodity markets, since contracts have a settlement date at which trading stops can affect longer-term technical patterns and trends, incorrect measurement of the time and price correlation between contracts. The results are either called’ nearest future,” perpetual series’ or’ continuous series’ and are given by several data vendors and exchanges
Incorrect
In commodity markets, since contracts have a settlement date at which trading stops can affect longer-term technical patterns and trends, incorrect measurement of the time and price correlation between contracts. The results are either called’ nearest future,” perpetual series’ or’ continuous series’ and are given by several data vendors and exchanges
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Question 3 of 10
3. Question
Which of the following linked contract method is just a plot of each futures contract as it expires and is replaced by a new contract?
Correct
Three specific types of similar contracts exist the nearest future, the permanent, and the constant. The nearest future approach is simply a plot of each futures contract when it expires and is replaced by a new contract.
Incorrect
Three specific types of similar contracts exist the nearest future, the permanent, and the constant. The nearest future approach is simply a plot of each futures contract when it expires and is replaced by a new contract.
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Question 4 of 10
4. Question
Differentiate between the nearest future and perpetual contract of linked contracts.
Correct
In the nearest future process, a difference still occurs at the rollover into the new contract during the transition between old and new contracts. To prevent the nearest future rollover problem, the perpetual contract (also known as the “constant-forward”) uses a constant forward price, namely the expected price some real-time ahead.
Incorrect
In the nearest future process, a difference still occurs at the rollover into the new contract during the transition between old and new contracts. To prevent the nearest future rollover problem, the perpetual contract (also known as the “constant-forward”) uses a constant forward price, namely the expected price some real-time ahead.
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Question 5 of 10
5. Question
Which of the following is the reason behind the perpetual contract not being used for testing a technical trading system?
Correct
The actual prices in the perpetual contract were never registered. Therefore it is not an acceptable method to test a technological trading framework.
Incorrect
The actual prices in the perpetual contract were never registered. Therefore it is not an acceptable method to test a technological trading framework.
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Question 6 of 10
6. Question
Given the scenario below:
If broad expectations are for a higher price in the future but with little or no capital to act, what effect does it have on the prices?Correct
Whatever the price change, essentially it’s dictated by buyers and sellers ‘ perceptions and strength. If large expectations in the future are for a higher price but with little to no resources to act, then prices will stay where they are or even fall. Perceptions shift, just as the ability to act does. None of the markets are fully stable or constant.
Incorrect
Whatever the price change, essentially it’s dictated by buyers and sellers ‘ perceptions and strength. If large expectations in the future are for a higher price but with little to no resources to act, then prices will stay where they are or even fall. Perceptions shift, just as the ability to act does. None of the markets are fully stable or constant.
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Question 7 of 10
7. Question
When prices travel in a trend what effect does it have on the demand and supply of the market? Choose the best possible statement.
Correct
As prices move in a trend called trending, they stay heading in one direction and warn us there are a demand and supply imbalance. Others would say incorrectly there are more buyers than sellers or vice versa.
Incorrect
As prices move in a trend called trending, they stay heading in one direction and warn us there are a demand and supply imbalance. Others would say incorrectly there are more buyers than sellers or vice versa.
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Question 8 of 10
8. Question
Which of the following statement is not a relationship between the prices of the goods and the buyers and the sellers of the market?
Correct
When prices are slowly increasing, for example, then buyers must have more optimistic expectations and be willing and able to put more money into a security. Contrary to that, if prices go down, buyers tend to have more negative perceptions and greater sales positions. The price trend, therefore, tells us how much control, aggressiveness, and anxiety there is to buy or sell every security on the marketplace.
Incorrect
When prices are slowly increasing, for example, then buyers must have more optimistic expectations and be willing and able to put more money into a security. Contrary to that, if prices go down, buyers tend to have more negative perceptions and greater sales positions. The price trend, therefore, tells us how much control, aggressiveness, and anxiety there is to buy or sell every security on the marketplace.
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Question 9 of 10
9. Question
Using the peaks and the troughs of a pattern which of the following satisfies the pattern of an upward trend?
Correct
When the peaks tend to be higher than the previous peaks and the troughs tend to be higher than the previous troughs, so the trend needs to be upward.
Incorrect
When the peaks tend to be higher than the previous peaks and the troughs tend to be higher than the previous troughs, so the trend needs to be upward.
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Question 10 of 10
10. Question
What is the necessary condition that must be fulfilled for a trend to be called a trading range?
Correct
When peaks and troughs are smaller than before, otherwise the trend has to be downward. The trend is indeterminable if the peaks and troughs are dispersed, and if the peaks and troughs occur at the same relative rates, the trend must be a trading range.
Incorrect
When peaks and troughs are smaller than before, otherwise the trend has to be downward. The trend is indeterminable if the peaks and troughs are dispersed, and if the peaks and troughs occur at the same relative rates, the trend must be a trading range.