Strategic Planning & Analysis Flashcards
7 cards from real Series 3 – The National Commodities Futures Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Strategic Planning & Analysis flashcards as text
A head-and-shoulders top pattern, once the neckline is broken on the downside, is generally interpreted as what?
Answer: A reversal signal indicating a likely decline
A completed head-and-shoulders top signals a trend reversal from up to down.
On a chart, a support level is best described as what?
Answer: A price area where buying interest is expected to halt a decline
Support is a price zone where demand is expected to be strong enough to stop a decline.
Prices are rising while open interest and volume are also rising. Technicians generally view this as what?
Answer: A confirmation of the uptrend
Rising price with rising volume and open interest indicates new money entering and confirms the uptrend.
The 50-day moving average crosses above the 200-day moving average. This is commonly called what?
Answer: A golden cross
A shorter-term average crossing above a longer-term one is a golden cross, viewed as bullish.
A Relative Strength Index (RSI) reading of 78 is conventionally interpreted as what?
Answer: Overbought
RSI readings above 70 are typically considered overbought.
A price gap that appears as the market breaks out of a trading range or chart pattern at the start of a new move is called what?
Answer: A breakaway gap
A breakaway gap occurs as price leaves a congestion area and begins a new trend.
Which statement best describes a point-and-figure chart?
Answer: It tracks price changes only and ignores the passage of time
Point-and-figure charts use X's and O's to show price movements regardless of time.
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Sources & references
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- finra.org — Score release, test dates, test delivery, fees, exam format, passing score · verified Oct 2026
- nfa.futures.org — Eligibility, score validity · verified Oct 2026