Forex Trading Test 3

Question 1

When the price of a currency pair increases, this indicates:

Accepted Answer

The market is bullish and the base currency is getting stronger

Answer

The market is bulish and the base currency is getting weaker

Answer

The market is bullish and the variable currency is getting stronger

Answer

The market is bearish and the variable currency is getting weaker

Question 2

When you place a pending order to sell something for less than the going rate on the market, you must:

Accepted Answer

Open a sell stop order

Answer

Open a buy limit order

Answer

Open a sell limit order

Answer

Open a buy stop order

Question 3

When you place a pending order to purchase something at less than the going rate on the market, you must:

Accepted Answer

Open a buy limit order

Answer

Open a sell stop order

Answer

Open a buy stop order

Answer

Open a sell limit order

Question 4

What indicator is utilized to determine market trends?

Accepted Answer

Moving average

Answer

Stochastic pattern

Answer

Moving average convergence and divergence

Answer

Relative strength index

Question 5

Which of these is not a day trading indicator?

Accepted Answer

Ichimoku pattern

Answer

Moving average convergence and divergence

Answer

Moving average

Answer

Bolliger bands

Question 6

Your stop loss would be as follows if you opened a sell pending order below the going market price:

Accepted Answer

Above the entry price

Answer

Below the entry price

Answer

At the market price

Answer

None of the above

Question 7

Which of the following indicators makes use of the 12-period exponential moving average?

Accepted Answer

Moving Average Convergence Divergence

Answer

Moving average

Answer

Stochastic pattern

Answer

Oscillator bands

Question 8

Which of these measures forex market volatility?

Accepted Answer

Bollinger bands

Answer

Relative strength index

Answer

Moving average

Answer

Stochastic pattern

Question 9

Which of these indicators best depicts the market's stage?

Accepted Answer

Moving average convergence and divergence

Answer

Relative strength index

Question 10

Which of these situations does not suggest a bullish trend?

Accepted Answer

MACD turns downward

Answer

Crossing of the MACD line by the signal

Answer

MACD turns upward

Answer

Moving average trails the MACD line