Study Guide for Technical Analysis Explained Fifth Edition, 5th Edition

25

PRACTICAL IDENTIFICATION OF CYCLES

Answers

1. cycle

2. B. It is the distance between the lows that is important, not their level.

3. Weak, downside, lower. Substitute words that have the same meaning are acceptable as answers, e.g., soft for weak, below for lower, etc.

4. E. Cycle highs that are late in arriving are usually a sign of a very strong trend.

5. C.

6. D. All of these statements are correct.

7. A. Cycles are just another technical tool and, as such, are far from perfect. It therefore makes sense to always use them in conjunction with other indicators.