19.If price rises and volume contracts and then price falls and volume expands: A. This is bearish. B. This is bullish. C. This is normal action. D. There is no indication of whether this is bullish or bearish.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Answer question 21
B. Volume leads price.
C. Volume contracts when prices decline. D. All of the above
19.If price rises and volume contracts and then price falls and volume expands:
A. This is bearish.
B. This is bullish.
C. This is normal action.
D. There is no indication of whether this is bullish or bearish.
20. When a rally culminates in a parabolic blow-off of volume, it is:
A. A certain sign of a top
B. A sign of exhaustion and therefore the odds favor a top
C. A sign that one more rally to a new high on low volume should be expected
D. None of the above
21. Which of the following statements is true?
A. Volume usually goes with the trend.
B. Volume often leads price.
C. Volume is a totally independent variable from price, and this helps
our ability to interpret charts.
D. Volume does not "speak to us all the time. E. All of the above
F. A and B
22. To the market technician, the transitional phase has great significance because:
A. It is easy to spot.
B. It always takes the form of a V formation.
C. It marks the turning point between a rising and a falling market. D. A and B
23.How are transition phases signaled in the markets?
A. By monitoring stories in the media
B. By adopting the Dow theory
C. By quiet market action
D. By clearly definable price patterns or formations
24.The "line" formation developed from Dow theory is similar to:
A. A triangle
B. A flat head-and-shoulders top
C. A rectangle
D. None of the above
25. Please circle a head-and-shoulders top in this chart.
umr
Transcribed Image Text:B. Volume leads price. C. Volume contracts when prices decline. D. All of the above 19.If price rises and volume contracts and then price falls and volume expands: A. This is bearish. B. This is bullish. C. This is normal action. D. There is no indication of whether this is bullish or bearish. 20. When a rally culminates in a parabolic blow-off of volume, it is: A. A certain sign of a top B. A sign of exhaustion and therefore the odds favor a top C. A sign that one more rally to a new high on low volume should be expected D. None of the above 21. Which of the following statements is true? A. Volume usually goes with the trend. B. Volume often leads price. C. Volume is a totally independent variable from price, and this helps our ability to interpret charts. D. Volume does not "speak to us all the time. E. All of the above F. A and B 22. To the market technician, the transitional phase has great significance because: A. It is easy to spot. B. It always takes the form of a V formation. C. It marks the turning point between a rising and a falling market. D. A and B 23.How are transition phases signaled in the markets? A. By monitoring stories in the media B. By adopting the Dow theory C. By quiet market action D. By clearly definable price patterns or formations 24.The "line" formation developed from Dow theory is similar to: A. A triangle B. A flat head-and-shoulders top C. A rectangle D. None of the above 25. Please circle a head-and-shoulders top in this chart. umr
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