Technical Analysis
Mock Test DemoIFMC Institute

Q1. There are essentially two methods of analyzing investment opportunities in the security market viz fundamental analysis and technical analysis?

Technical analysis gives entry or exit level were as Fundamental analysis give information about buy a stock or not through financial prospectus.

Q2. What are the basis of Technical Analysis?

Technical Analysis can be forecast future prices based on an examination of the past price movements. Technical analysis is not astrology for predicting prices, trend or also give trade on the basics demand-supply.

Q3. “Each price represents a momentary consensus of value of all market participants – large commercial interests and small speculators, fundamental researchers, technicians and gamblers- at the moment of transaction”?

Technical analysis looks at the price and what it has done in the past and assumes it will perform similarly in future under similar circumstances. Technical analysis looks at the price and assumes that it will perform in the same way as done in the past under similar circumstances in future.

Q4. Technical Analysis can be defined as an……………

Technical analysis is a graphical chart process which help to known about trend of the market, price, volumes and open interest, on a chart and applying various patterns and indicators to it in order to assess the future price movements.

Q5. Most technicians acknowledge that hundreds of years of price charts have shown us one basic truth – prices move in …………………….

Trend - If prices were always random, it would be extremely difficult to make money using technical analysis. A technician believes that it is possible to identify a trend, invest or trade based on the trend and make money as the trend unfolds.

Q6. Technical analysis can be applied to many different time frames, it is possible to spot ………..and……………trends.

The technical analysis is applied may range from intraday (1-minute, 5-minutes, 10-minutes, 15-minutes, 30-minutes or hourly), daily, weekly or monthly price data to many years.

Q7. “A technical analyst knows the price of everything, but the value of nothing”.

Technical analysis simply used to forecast the future price .So, the technical experts used the historical data such as historical price , top & bottom data or current market price to identify the current market trend or future price.

Q8. The objective of analysis is to …………… the direction of the future price.

Technical analysis involve putting stock information like prices, volumes and trend ( bullish or bearish ) on a chart and applying various patterns and indicators to it in order to assess the future price movements.

Q9. The basic assumptions of technical Analysis?

Q10. Technical analysis has universal applicability. It can be applied to any financial instrument…..

Q11. If prices move above the upper band of the trading range, then ………...

When the price hits the upper circuit ( In case demand approach ) which means the buyer is more strong in the market and get control over the market.

Q12. If prices move below the lower band, then……………..

When the price hits the lower circuit ( In case supply approach ) which means the seller is more strong in the market and get control over the market.

Q13. Fundamental analysis is used to decide …………… and technical analysis is used to decide …………...

Technical analysis can help spot demand (support) and supply (resistance) levels as well as breakouts. Checking out for a breakout above resistance or buying near support levels can improve returns.

Q14. It is more important to control risk than to maximize …………..

Technical Analysis, if practiced with discipline, gives you specific parameters for managing risk. It’s simply supply and demand. Waste what’s plentiful, preserve what’s scarce.

Q15. _________ is formed using closing price data.

Line chart is particularly useful for providing a clear visual illustration of the trend of a stock’s price or a market’s movement. It is an extremely valuable analytical tool which has been used by traders for past many years.

Q16. Technical analysis works on ………… principle.

Q17. Technical analysis considers the market to be …….. psychological and ……. logical.

Q18. Fundamental analysts consider the market to be ……… psychological and …….. logical.

Q19. What is 3P theory for professional trader?

Q20. What is the Strengths of Technical Analysis?

Q21. What is the weakness of Technical Analysis?

Q22. Technical is 20% psychological and 80% Logical…..

Technical analysis is based on 20% Logical and 80% psychological. Logical means forecast future price on the assumption basics (chart, patterns, indicators or etc). Psychological or logical may be open for debate, but there is no questioning the current price of a security. After all, it is available for all to see and nobody doubts its legitimacy.

Q23. Preserve your capital because your capital is your …………..

Preserve your capital because your capital is your opportunity. You can be right a thousand times, become very wealthy and then get wiped out completely if you manage your risk poorly just once.

Q24. The price is the final result of the fight between the forces of supply and demand for any tradable instrument.

In share market the trade price is based on the demand ( buyer price) & supply( seller price). Trade price is used in secondary market for trading.

Q25. “A technical analyst knows the price of everything, but the value of nothing”. Which types of price that he used?

Technical analysis simply used to forecast the future price .So, the technical experts used the historical data such as historical price , top & bottom data or current market price to identify the current market trend or future price.

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