Exam 16: Technical Analysis

In the 1990s,many investment firms hired large numbers of fundamental analysts and very few technical analysts.Following the market downturns of 2000 and 2001,investment firms realized their mistake and hired far more technical analysts than fundamental analysts.

All of the following are assumptions made by technical analysts except:

Which forms of the Efficient Market Hypothesis addresses the information used in technical and fundamental analysis? Do studies of technical analysis methods tend to support or refute the EMH?

If an investor buys a stock when its price has increased 15 percent from its previous low,the investor is employing:

Small changes in the put/call ratio are considered unimportant,whereas extreme changes convey information.Two rules of thumb are that a ratio greater than _________ based on a 10-day moving average would be excessively bearish and thus a buy signal,and a ratio of less than _____________ would be excessively bullish,and therefore a sell signal.

Which of the following indicates the market is at its peak,according to contrarians?

How can relative strength analysis be helpful in a top-down approach to security analysis?

How does a point-and-figure chart compress many price changes into a small space?

The bearish-sentiment index is calculated as the ratio of advisory services that are bearish to the total number with an opinion.

Relative strength analysis is popular because it is generally not subject to conflicting interpretations.

A period of correction is often followed by a period of ________.

Technical analysts agree with the fundamental analysts regarding the usefulness of accounting data.

Which of the following would be considered a strong bearish signal?

Technical analysis utilizes a top-down,fundamental approach to common stocks.

Volume and specific calendar time are not considered important in a:

A support level is a price range:

Technical analysis reflects the idea that stock prices:

In order to have confirmation of a major market trend under the Dow Theory,the:

Explain how profit taking and support levels are related.