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

29

THE IMPORTANCE OF SENTIMENT

Answers

1. E.

2. B.

3. A. Newsletter writers as a group are contrary indicators.

4. D. When they do, it is always a good idea to get some kind of trend-confirmation signal from the price itself.

5. momentum

6. B. Contratrend signals are usually less powerful than pro-trend signals.

7. B. When margin debt is contracting, this indicates a lack of confidence and is bearish.

8. A. Because this is a short-term indicator, it signals less important turning points.

9. D. These indicators can be used as flow-of-funds or sentiment indicators.

10. A. Sometimes the sentiment numbers are unusually high at the final peak, but in most cases, divergences are more likely.

11. C.

12. B. Fundamental indicators of value, such as a ...