Technical Analysis Quiz

What is technical analysis?

• A type of software used for analyzing technical data

• A method of evaluating securities by analyzing statistics generated by market activity.

• A method of predicting the weather using market trends

• A form of art that involves creating technical drawings

What are the key principles of technical analysis?

• Market sentiment, news analysis, and company financials

• Fundamental analysis, qualitative analysis, and quantitative analysis

• The key principles of technical analysis include trend analysis, support and resistance levels, and chart patterns.

• Economic analysis, political analysis, and social analysis

Explain the concept of support and resistance in technical analysis.

• Support and resistance are key concepts in technical analysis used to identify potential price levels where the price may reverse or experience a significant increase in trading activity.

• Support and resistance are used to predict the weather in technical analysis

• Support and resistance only apply to fundamental analysis

• Support and resistance are irrelevant in technical analysis

What are the different types of charts used in technical analysis?

• Histograms, flow charts, timeline charts, and Gantt charts

• Pie charts, scatter plots, area charts, and radar charts

• Pictorial charts, organization charts, process flow charts, and control charts

• Line charts, bar charts, candlestick charts, and point and figure charts

How is volume used in technical analysis?

• To determine the age of a stock

• To predict the weather patterns

• To calculate the distance between two data points

• To measure the strength of a price movement.

Discuss the importance of moving averages in technical analysis.

• Moving averages help smooth out price data to identify trends over a specific period of time.

• Moving averages are irrelevant in technical analysis

• Moving averages are only used by inexperienced traders

• Moving averages only work for short-term trends

Explain the concept of trend lines in technical analysis.

• Trend lines in technical analysis are used to identify and visualize the direction of a security's price movement.

• Trend lines are used to determine the best time to buy or sell stocks.

• Trend lines are used to calculate the average price of a security over a period of time.

• Trend lines are used to predict the weather patterns for a particular region.

What are the common technical indicators used in technical analysis?

• Volume analysis, Fibonacci retracement, Candlestick patterns

• GDP growth rate, Inflation rate, Unemployment rate

• PE ratio, Dividend yield, Earnings per share

• Moving averages, RSI, MACD, Bollinger Bands, stochastic oscillators

How does technical analysis differ from fundamental analysis?

• Technical analysis focuses on predicting future stock prices, while fundamental analysis focuses on historical data

• Technical analysis relies on news and market sentiment, while fundamental analysis relies on chart patterns

• Technical analysis uses financial ratios and earnings reports, while fundamental analysis uses moving averages and support/resistance levels

• Technical analysis focuses on historical price and volume data, while fundamental analysis evaluates a company's financial health and performance.

Discuss the limitations of technical analysis.

• Limitations of technical analysis include its inability to predict future events, its reliance on historical data, and its susceptibility to market manipulation.

• It is not susceptible to market manipulation

• It can accurately predict future events

• It does not rely on historical data