CPT Technical Analysis & Chart Patterns

Question 1

What is technical analysis primarily used for?

Accepted Answer

To study chart patterns and market trends

Answer

To audit company financials.

Answer

To analyze economic indicators.

Answer

To evaluate interest rates.

Question 2

What does a 'head and shoulders' pattern indicate?

Accepted Answer

A trend reversal from bullish to bearish

Answer

A continuation of the current trend.

Answer

A breakout signal.

Answer

A consolidation phase.

Question 3

What is a support level in technical analysis?

Accepted Answer

A level where price tends to stop falling and may bounce

Answer

A price that accelerates decline.

Answer

A fixed price for dividends.

Answer

A tax policy reference.

Question 4

Which indicator measures market momentum?

Accepted Answer

Relative Strength Index (RSI)

Answer

Moving Average

Answer

Fibonacci Retracement

Answer

MACD Histogram

Question 5

What does a candlestick with a small body and long wicks represent?

Accepted Answer

Indecision and potential reversal

Answer

Strong trend.

Answer

Market certainty.

Answer

Confirmed breakout.

Question 6

Which chart pattern resembles a 'W' shape?

Accepted Answer

Double bottom

Answer

Head and shoulders

Answer

Rising wedge

Answer

Falling triangle

Question 7

What is a resistance level?

Accepted Answer

A level where price tends to stop rising and may reverse

Answer

A lower price limit.

Answer

A taxation threshold.

Answer

A dividend ceiling.

Question 8

What does MACD stand for?

Accepted Answer

Moving Average Convergence Divergence

Answer

Market Average Convergence Divergence

Answer

Market Analysis Chart Dynamics

Answer

Mean Analysis Converging Divergence

Question 9

Which chart pattern is typically considered bullish?

Accepted Answer

Ascending triangle

Answer

Descending triangle

Answer

Symmetrical triangle

Answer

Bear flag