3. According to bar chart analysis, a one-day price reversal occurs in a market

Question

3. According to bar chart analysis, a one-day price reversal occurs in a market when a. prices make a new high for the current advance but then closes higher than the b, prices make a new low for the current advance but then closes lower than the c. prices make a new high for the current decline and then closes higher than the d. prices make a new low for the current decline but then closes higher than the A white (hollow) candlestick with a short body and a long lower shadow indicates that previous day's close. previous day's close. previous day's close. previous day's close 4. a. The bull controlled trading (i.e., buying pressure was stronger than selling pressure) for most of the time The bull controlled trading for some time, but lost control by the end and the bears made an impressive comeback The bear controlled trading for some time, but lost control and the bull made an impressive comeback b. c. d. The bear controlled trading (i.e., selling pressure was stronger than buying As of 22 Feb 2018, the initial margin and maintenance margin for CME corn futures 365.50 cents/bushel. On 23 Feb 2018, the Dec CME corn futures contract settled at pressure) for most of the time. 5. contract as set by the exchange were S550 and $450 per contract, respectively. Suppose that, on 22 Feb 2018, a trader bought 1 Dec CME corn futures contract (5,000 bushels) at 363.00 cents/bushel. The trader would receive a margin call to replenish her account with a deposit of a. $25.00 b. $50.00 c. $125.00 d. The trader would not receive a margin call signal occurs when an X in a new According to point-and-figure charts, a column exceeds the highest X in the immediately preceding X column and a signal occurs when an O in a new column falls below the lowest O in the immediately preceding O column 6. a. buy; sell b. sell; buy c. hold; proceed d. proceed; hold

Explanation / Answer

3. According to bar chart analysis, a one day price reversal occurs in a market when

Ans a) prices make a new high for the current advance but then closes higher than the previous days' close

Price reversal occurs when there is a new high for the current advance and closes higher than the previous days' close.

4. A white (hollow) candle stick with a short body and a long lower shadow indicates that

Ans b) The bull controlled trading for some time, but lost control by the end and the bears made an impressive comeback.

Long lower shadow candlestick is typicaly considered to be a bullish signal , but it is quite weak in this capacity.

5. The trader would receive a margin call to replenish her account with a deposit of

Ans c) $125.00

In order to settle the orward contact, the trader would replenish with a deposit of 2.5 * 5000 / 100 = $125

6. Accoding to point-and-figure charts a sell signal occurs when an X in a new column exceeds the highest X in the immediately preceeding X column and a buy signal occurs when an O in a new column falls below the lowest O in the immediately preceeding O column.

Ans. b) sell ; buy

When the price exceeds the highest price, it is best to sell and when price reaches the lowest, it is best to buy.

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