FREE CTA Market Indicators & Trends Questions and Answers

Question 1

What does a leading market indicator predict?

Accepted Answer

Future market movements

Answer

Current price only.

Answer

Past market history only.

Answer

Government decisions.

Question 2

What does a lagging indicator measure?

Accepted Answer

Confirms existing trends

Answer

Predicts future trends.

Answer

Replaces trend analysis.

Answer

Estimates company profits.

Question 3

Which index is considered a leading market indicator?

Accepted Answer

S&P 500

Answer

Consumer Price Index (CPI).

Answer

Retail Sales Report.

Answer

Unemployment Rate.

Question 4

What is an economic indicator that signals an economic downturn?

Accepted Answer

Inverted yield curve

Answer

Bull market.

Answer

Positive earnings reports.

Answer

Rising consumer confidence.

Question 5

Which phase follows a market peak?

Accepted Answer

Contraction

Answer

Expansion.

Answer

Recovery.

Answer

Acceleration.

Question 6

Which technical indicator measures market volatility?

Accepted Answer

Volatility Index (VIX)

Answer

Moving average.

Answer

Stochastic Oscillator.

Answer

Relative Strength Index.

Question 7

What trend is defined by higher highs and higher lows?

Accepted Answer

Uptrend

Answer

Downtrend.

Answer

Sideways trend.

Answer

Neutral trend.

Question 8

What defines a bear market?

Accepted Answer

20% decline or more

Answer

5% decline.

Answer

10% decline.

Answer

Market consolidation.

Question 9

Which market trend is associated with investor optimism?

Accepted Answer

Bull market

Answer

Bear market.

Answer

Flat market.

Answer

Recession market.