Question 1

Why doesn't the doji candle have a real. body?

Options :

A :

The doji is an abbreviated method of drawing candles

B :

The open and close are the same

C :

The high and low are the same

D :

Buyers are stronger than sellers

Answer: B

Question 2

Which of the following is true of Bollinger Bands?

Options :

A :

The bands are based on the moving averages of prices

B :

The bands are based on moving averages of prices plus or minus a standard deviation factor

C :

When price equals the upper band it is considered bullish

D :

When prices are above the upper band they are considered to be in oversold territory

Answer: B

Question 3

Which of the following is one of the advantages of computerized trading systems?

Options :

A :

Computerized trend following systems are profitable in all types of markets

B :

Computerized systems improve the interpretation of complex trading patterns

C :

Computerized trading systems remove the human emotion element

D :

All of the above

Answer: C

Question 4

According to Charles Dow, what has been the main downfall of Wall Street investors?

Options :

A :

Independent thinking

B :

Failure to stay the course

C :

Pride of opinion

D :

Failure to abide by classic trading rules

Answer: C

Question 5

According to the MTA Code of Ethics, what prohibitions MUST be adhered to after making a buy or sell recommendation?

Options :

A :

Allow adequate time for clients to act on recommendations before the analyst acts on the recommendation

B :

Analysts must give clients and their employer adequate time to trade, but the analyst-s family members are under no such restriction

C : Analysts may effect trades for their own account even if their employer has not had time to act on their recommendation

D : Insider trading activity is the subject of SEC regulations, therefore the MTA Code of Ethics is silent on this issue

Answer: A

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