Which of the following is NOT one of the uses of moving averages by technical analysts? A. To determine when trend line will be broken B. To determine trend C. To generate when to buy or sell D. To determine whether price action is extreme

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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Chapter14: Valuation: Market-based Approach
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Problem 9QE
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Which of the following is NOT one of the uses of moving averages by technical analysts?
A. To determine when trend line will be broken
B. To determine trend
C. To generate when to buy or sell
D. To determine whether price action is extreme
Based on the chart given below, identify the chart pattern and the best course of action:
-37.00
- 36.00
- 35.00
-34.00
-33.00
- 32.00
-31.00
B-30.00
-29.00
truly
Volume
A.
Mar
May Jul Sep Nov Jan Mar
2013
sol, p
May Jul
2014
Sep Nov Jan Mar May Jul
2015
B. overconfidence
Double top; go short at point A as shares have violated an uptrend support line.
C.
c. framing
D. mental accounting
B. Head and shoulder top; wait for a close below point B to execute below the neckline.
28.00
27.00
- 26.00€
-25.00
-24.00
- 23.00
- 22.00
- 21.00
2000
Million
C. Head and shoulder top; go long and use current pullback as shares are retesting an important
support level at point B.
D. Triple top; wait for a close below point C and execute shorts when prices are 2% below the
neckline.
- 300
- 200
100
Which of the following pairs of signals indicating the end of a bull market?
A. Trading volume is low and the volatility drops.
63425
B. Popular stocks collapse while the broad market hits new highs
Psychologists have found that people who make decisions that turn out badly blame themselves more when
that decision was unconventional. The name for this phenomenon is
3
A. regret avoidance
C. Trading volume is high and talk of the stock market is everywhere.
D. Small caps and Utilities stocks underperform the broad market index
1
2
4
Transcribed Image Text:Which of the following is NOT one of the uses of moving averages by technical analysts? A. To determine when trend line will be broken B. To determine trend C. To generate when to buy or sell D. To determine whether price action is extreme Based on the chart given below, identify the chart pattern and the best course of action: -37.00 - 36.00 - 35.00 -34.00 -33.00 - 32.00 -31.00 B-30.00 -29.00 truly Volume A. Mar May Jul Sep Nov Jan Mar 2013 sol, p May Jul 2014 Sep Nov Jan Mar May Jul 2015 B. overconfidence Double top; go short at point A as shares have violated an uptrend support line. C. c. framing D. mental accounting B. Head and shoulder top; wait for a close below point B to execute below the neckline. 28.00 27.00 - 26.00€ -25.00 -24.00 - 23.00 - 22.00 - 21.00 2000 Million C. Head and shoulder top; go long and use current pullback as shares are retesting an important support level at point B. D. Triple top; wait for a close below point C and execute shorts when prices are 2% below the neckline. - 300 - 200 100 Which of the following pairs of signals indicating the end of a bull market? A. Trading volume is low and the volatility drops. 63425 B. Popular stocks collapse while the broad market hits new highs Psychologists have found that people who make decisions that turn out badly blame themselves more when that decision was unconventional. The name for this phenomenon is 3 A. regret avoidance C. Trading volume is high and talk of the stock market is everywhere. D. Small caps and Utilities stocks underperform the broad market index 1 2 4
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