6
TRENDLINES
Answers
1. C. A trendline that has only been touched once is not a real trendline because it could be drawn at virtually any angle and would not reflect the underlying trend.
2. D. The longer the line, the greater its significance.
3. Reversal and continuation or consolidation
4. This line is touched or approached on numerous occasions. The one false break, flagged by the right-pointing arrow at the 1987 peak, adds to its significance because the price was unable to hold above the line, thereby demonstrating its importance as a resistance area. Too many breaks of this nature would reduce the significance of the line.
5. C. The completion ...
Get Study Guide for Technical Analysis Explained Fifth Edition, 5th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
