Assume that price has breached a resistance level and has risen a significant distance above the resistance level. If a trader now initiates a long position in the market, the trader is said to be which of the following?
A. Conservative in time of entry and aggressive in price on entry.
B. Aggressive in time of entry and conservative in price on entry.
C. Aggressive in time of entry and aggressive in price on entry.
D. Conservative in time of entry and conservative in price on entry.
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Assume that both the broad market index and a stock have indicated a number of bullish signals. Pick the most appropriate statement from the following list.
A. The bullish signals in the broad market serve as confirmation and the trader will only act on the bullish signals indicated by the stock.
B. The trader will go long in the stock based on bullish signals indicated in the market and not on bullish signals indicated in the stock.
C. The trader will go long in the stock based on bullish signals in the stock irrespective of the signals indicated by the broad market.
D. None of the above is appropriate.
Pick the most appropriate statement(s) from the following list with respect to multiple timeframe analysis and trading.I. Traders should use a lower timeframe to fine tune entries.II. Traders should use a higher timeframe to fine tune entries.III. Traders should use a higher timeframe as a market trend indicator.IV. Traders should use a lower timeframe as a market trend indicator for entries initiated based on a higher timeframe.
A. Only I and III.
B. Only I.
C. Only II and IV.
D. Only III.
When a trader seeks price confirmation, the trader is said to be which of the following?
A. Conservative in time of entry and aggressive in price on entry.
B. Aggressive in time of entry and conservative in price on entry.
C. Aggressive in time of entry and aggressive in price on entry.
D. Conservative in time of entry and conservative in price on entry.
Pick the best statement(s) from the following list. Which of the following is associated with the components of risk capacity?I. The degree at which a market participant is risk seeking.II. The degree at which a market participant is risk averse.III. The market participant’s expectation of future market. behaviorIV. The market participant’s performance expectations.
A. Only I, II, and IV.
B. Only III and IV.
C. Only I and II.
D. All are relevant.