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Flashcards in CH2 Methods of Charting Deck (18)
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1

The concept of measuring ........, ........, ........., .......... (OHLC) is key to understanding almost all charting techniques.

open, high, low and close

2

a chart is a graphic representation of historical market action

price, volume and open interest

3

They illustrate price history in a concise and readily understood way

Charts

4

h ey act as a leading indicator by providing an early warning signal that fundamental changes may be taking place

charts

5

A ................... is a price objective or the price level that an asset is expected to achieve based on a chart formation.

measured move

6

For stocks, ........... represents the total number of shares traded on a given day

the volume

7

.................is the total number of contracts outstanding (still open, or not closed out) at the end of the trading session

Open interest

8

A line chart differs from a bar chart in that only ........ prices are shown

closing

9

..................are one of the oldest charting techniques, dating back to the 1600s. Originally used by Japanese rice farmers for keeping track of crop prices, they add another, more visual dimension to the Western art of chart analysis

Candlestick charts

10

Both the bar and candlestick chart has four components, open, high, low and close. The main difference between the construction of the two charting methods is that candlestick charts have a ..............

real body

11

...............is a box that visually represents the difference between the trading session’s open and close

real body

12

The upper shadow extends to the .....................price

highest

13

the lower shadow extends to the ...............price

lowest

14

........................ charts ignore time when plotting price action

point and figure (P&F)

15

One of the main benefits of point and figure charting is the discovery ................. and .................

intraday support and resistance areas

16

it is an excellent method for discovering when new trends are likely to develop and approximately to what price level they may reach .......................

point and figure (P&F)

17

The “X” records rising prices; the “O” records declining prices. Each time a trend reverses, a new column is started ...........

point and figure (P&F)

18

shows the y-axis in equal price units. Therefore, the vertical distance between $1 and $3 is the same as the distance between $121 and $123, etc. It is a $2 or a 2 point change

arithmetic scale