TA - CHAPTER 2.2 - EWT

Who is the Elliott Wave Theory named after?

• Ralph Nelson Elliott

• John N. Elliot

• Warren Buffett

• George Ralfie Elliot

How many waves are there in total according to the Elliott Wave Theory?

• 12

• 10

• 8

• 5

Which wave is usually the longest and strongest according to the Elliott Wave Theory?

• Wave 4

• Wave 2

• Wave 3

• Wave 1

What is the term used in the Elliott Wave Theory to describe the strong move in a stock's price corresponding with the main direction of the underlying trend?

• Impulse waves

• Correction waves

• Fractal waves

• Repetitive waves

Which wave cannot retrace more than 100% of Wave 1 according to the rules of the Impulse Waves Pattern?

• Wave 3

• Wave 2

• Wave 5

• Wave 4

What is the characteristic of Wave a in the Correction Waves Pattern?

• Tends to break the illusions of Wave A and Wave B

• Volume should be lower than in wave A

• Continued faith in a longer-term buy and hold philosophy

• Prices reverse higher

What is a bull trap in the context of the Elliott Wave Theory?

• A false signal that reverses after a convincing rally

• A term used to describe the natural rhythm of crowd psychology

• A strong move in a stock's price corresponding with the main direction of the underlying trend

• A reversal from down-market to up-market

What is the main trend established by according to the Elliott Wave Theory?

• Waves a, b and c

• Impulse waves

• Waves 1 through 5

• Correction waves

What is the characteristic of Wave c in the Correction Waves Pattern?

• Tends to break the illusions of Wave A and Wave B

• Prices reverse higher

• Volume picks up, and almost everyone realizes that a bear market is firmly established

• Continued faith in a longer-term buy and hold philosophy

What is a bear trap in the context of the Elliott Wave Theory?

• A reversal from down-market to up-market that can lure unsuspecting buyers

• A term used to describe the natural rhythm of crowd psychology

• A false signal that reverses after a convincing rally

• A term used to describe the strong move in a stock's price corresponding with the main direction of the underlying trend