Transitional phases in markets
Identification of price patterns
Ratio and arithmetic scaling
Significance of price patterns
Determining the validity of a breakout
1. To the market technician, the transitional phase has great significance because:
A. It is easy to spot.
B. It always takes the form of a V formation.
C. It marks the turning point between a rising and a falling market.
D. A and B
2. How are transition phases signaled in the markets?
A. By monitoring stories in the media
B. By adopting the Dow theory
C. By quiet market action
D. By clearly definable price patterns or formations
3. The “line” formation developed from Dow theory is similar to:
A. A triangle ...