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1. Which of the following patterns resonate with the price action highlighted within the black box marked 'A' &
'B'?
A) Bullish Engulfing & Hanging Man
B) Piercing Line & Evening Star
C) Bullish Engulfing & Shooting Star
D) Piercing Line & hammer
2. Which of the following perfectly describes the pattern of a standard broadening formation with regards to pattern analysis?
A) The upper trend line goes upwards and must have two peaks, the latter higher than the former
B) The upper trend line goes upwards and must have two peaks, the latter lower than the former
C) The upper trend line goes upwards and must have a single peak
D) The upper trend line goes downwards and must have two peaks, the latter higher than the former
3. Which of the following is a general rule for trading futures?
A) Due to the fact that markets only trend 30% of the time, 100% of capital should be invested at all times
B) The majority of capital should be committed to the strongest market since it is rare that more than two or more markets will experience a major move simultaneously
C) At least 50% of total equity should be dedicated to the market group with the strongest trend
D) Total amount risked on any single trade should not exceed 5% of equity
4. Which of the following are the three basic tenets of Elliott Wave Theory, in the CORRECT order of importance?
A) Pattern, ratio and time
B) Price, momentum and volume
C) Waves, alternation and reversals
D) Price, pattern and volume
5. This chart type integrates volume directly into the price bar:
A) VWOP
B) Renko
C) Equivolume
D) Ichimoku Cloud
Solutions:
Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |
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