Exam 9: Behavioral Finance and Technical Analysis

Chartists carefully read point and figure charts to observe market patterns (where there is support,resistance,breakouts,congestion,and so on).

A breadth of the market indicator attempts to measure what a broad range of securities is doing as opposed to merely examining a market average.

Barron's Confidence Index has only a mixed record of success.

The short interest ratio is the total short sales position,divided by average daily exchange volume for the month.

The Barron's Confidence Index is based on the premise that bond traders,being more sophisticated than stock traders,pick up trends more quickly.

Odd-lot traders traditionally are assumed to be strong sellers right before the bottom of a bear market,but this is not always the case.

While the Dow Jones Industrial Average may be weighted toward large firms,a __________ indicator may be used to examine all stocks on an exchange.