Study sets, textbooks, questions
Upgrade to remove ads
The Neglected Essentials
Terms in this set (21)
Which of these statements apply to volume?
Number of Trades during a selected time period, number of shares or contracts traded, number of price changes during a time period, activity of traders and investors
Volume reflects all of the following except
How market participants will react to future price changes
Volume is slightly higher than during the previous rally
the uptrend is healthy, hold longs or add to them
Volume is double what it was during the previous rally.
Bears are panicking; take at least partial profits on long positions
Volume is half of what it was during the previous rally
the uptrend is running out of stream; take at least partial profits on long positions
Volume is approximately the same as during the previous rally
the uptrend is healthy; hold longs
On balance volume (OBV)
confirms bear moves when it falls to a new low, tracks the running total of traders' emotional commitments, and often reaches a new peak before a new peak in price
Prices open below the previous day's close and close lower
amateurs and professionals bearish
prices open above the previous days open and close higher
amateurs and professionals bullish
prices open above the previous days close, but close at the lows.
amateurs relatively bullish, professionals relatively bearish
prices open below the previous day's close, but close at the highs
amateurs relatively bearish, professionals relatively bullish
The Chicago Board of Trade reports that open interest in soybeans stands at 120,000 contracts. this means that
120,000 contracts are held by the longs and 120,000 owed by the shorts
a trader who is long sells to another who is short. what happens to open interest?
open interest decreases
a new bear enters the market and sells to an earlier bear who buys to cover his shorts. what happens to open interest?
open interest stays unchanged.
a new bull enters the market and buys from an earlier bull who sells his position. what happens to open interest?
open interest stays unchanged
a new buyer and a new seller trade with each other. what happens to open interest?
open interest increases
rising open interest shows that
bulls are confident and aggressive & the supply of losers is growing & the trend is likely to continue & bears are confident and aggressive
The Herrick Payoff Index (HPI) detects accumulation and distribution by measuring changes in
prices, volume, and open interest
The presence of cycles in market data depends on
changes in the economic fundamentals, greed in good times and fear in bad times among producers and consumers, swings between pessimism and optimism among traders
Bonds advance for 7 days; decline for 3 days; advance for 8 days; decline for 4 days; advance again for 6 days; and start declining. When should you start looking for a buying opportunity?
in about 3 days
Traders can analyze markets in greater depths by looking at them in 2 timeframes. Which of the following combinations makes the most sense?
weekly and daily
Sets found in the same folder
Classical Chart Analysis
Sets with similar terms
Final Exam Quiz Questions pt. 3
Exam Review 5
Eco chapter 15
Chapter 15: Tools of Monetary Policy
Other sets by this creator
13 perfect competition
12 demand and supply analysis
6 time value of money