NCFM technical Analysis Module Sample Questions-Chapter-1

1. This below statement  is true about technical chart

I.            x-axis represents time-y-axis represents price

II.            x-axis represents future time-y-axis represents near price

III.            x-axis represents time-y-axis represents time

IV.            x-axis represents time-z-axis represents zero 

2. Technical analysis can help investors anticipate what is “likely” to happen to ________

     I.            over time.
  II.            prices
III.            volumes
IV.            economy
 V.            fair value of stock

3. Technical analyst’s tools

I.            Fundamental values

II.            P/E ratio

III.            Charts

IV.            News

4. Line charts are formed by connecting the ____________of each time frame.

     I.            Average closing price

  II.            Average traded price

III.            Closing price

IV.            Open price

5. In Bar char left tick indicate___ price, right tick indicate___ price

     I.            Open-close
  II.            High-low
III.            Close-open
IV.            52-high-52-low 

 

6. Support and resistance line is called______

     I.            Bottom line and top line
  II.            Mid line and max line of the stock
III.            Avg traded value max and min
IV.             52 week hight price and low price

7. candlestick chart can be created using the data of

     I.            high-prices
  II.            low-prices
III.            open-prices
IV.            closing prices
 V.            all of the above.

8. Technical analsysi is aplicable for stock you can’t pedicate the price of other products?

                                I.            Yes

                              II.            No

9.  if the price touch below support line means______?

                             I.            Stock moves bullish trend

                          II.            The reqired moment is strated

                      III.            Enter in bearsh it is indicator for increse in supply

                     IV.            Time to invest this type of stocks.

10.       Strength about technical analsysis is below statement is not true.

     I.            TA main focus on price trends.
  II.            it refects management actions.
III.            Past and present volatility.
IV.            Easly Estimated the price levals
 

11.       Strong Weaknesses of Technical Analysis is

     I.            Analyst bias.
  II.            TA softwares are costliers
III.            They not reflect price of the stock.
IV.            Technical analsysis are not depending on volumes
 

12.      The study of technical analysis is based on which of the following elements:

   I.        price
 II.        volume
III.        open interest (in case of derivatives)
IV.            all of the above
 

13.       A technician will refer to periods of accumulation as evidence of an upcoming

     I.            rise in prices
  II.            fall in prices
III.            range-bound prices
IV.            none of the above

14.       Which of the following statements is true about price?

     I.            Price movements succeed fundamental developments
  II.            Price movements are totally random
III.            Price discounts everything
IV.            Price never move in trend

15.       _________ movements are typically referred to as bull and bear markets.

                 I.            Secondary

              II.            Daily

          III.            Major

         IV.            Primary

16. Which of the following best reveal psychology of the market at a certain point in time?

 I.        Line Chart
II.        Candlestick chart
III.        Bar Chart
IV.            None of the above