Charting Tools and Techniques Quiz

What is the primary purpose of drawing trendlines on a chart?

• To determine stock liquidity

• To predict future stock prices

• To calculate stock volatility

• To identify trends, support, and resistance

How can the price level tool be used in stock analysis?

• To create vertical trend indicators

• To draw horizontal support and resistance lines

• To measure stock volume

• To draw diagonal support lines

What historical event was used to demonstrate the price level tool's effectiveness?

• Toyota's merger announcement in 2015

• Toyota's stock split in 2014

• Toyota's dividend increase in 2016

• Toyota's significant high in October 2013

What does the Fibonacci retracement tool help identify within a trend?

• Market sentiment indicators

• Potential areas of retracement

• Future stock dividends

• Company earnings forecasts

In the context of Fibonacci retracement, what does a bounce at a retracement level indicate?

• A potential entry signal

• A stock split

• A dividend payout

• A market crash