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

6

TRENDLINES

Questions

Subjects to Be Covered

Trendlines

Types of trendline breaks

Determining their significance

Ratio versus arithmetic scaling

Extended and exhaustion trendlines

1. How many times must a line be touched to qualify as a trendline?

A. Once

B. Three times

C. Twice

D. None of the above

2. Which trendline has the greatest significance?

A. A 10-minute trendline

B. A 5-year trendline

C. A 2-year trendline

D. A 10-year trendline

3. What are the two types of trendline breaks? Please write in the answer.

A. R_____

B. C_____

4. Construct a trendline on the following chart that best reflects the underlying downtrend.

5. If a trendline is ...