Question

1. Identify the pattern that has been made by the last three candles in this chart of UMC. Refer to separate file for charts.

a. Bullish Engulfing

b. Morning Star

c. Three White Soldiers

d. Dark Cloud Cover

2.Which pattern has at least two equivalent reaction highs and two equivalent reaction lows?

a. Double top

b. Double bottom

c. Symmetrical Triangle

d.Rectangle

3. Chaikin Money Flow is calculated by summing the ADs over the past _____ days and dividing that sum by the total volume over the past _____ days.

	a.	14, 21
	b.	21, 14
	c.	14, 14
	d.	21, 21

4. A Dow Theory Buy Signal is given when the

	a.	S&P 500 and Nasdaq close above a prior rally peak
	b.	The Dow Industrial and Dow Utilities averages close above a prior rally peak
	c.	The Dow Industrial and Semiconductor averages close above a prior rally peak
	d.	The Dow Industrial and Dow Transportation averages close above a prior rally peak

5. Stops can be used to enter or exit a poStops can be used to enter or exit a position in a stock.

True

False

Answer 1

Answer #4. The Dow Industrial and the Dow Transportation averages close above previus rally peak because one of the most important principles of the Dow theory is that the movement of the Industrial Average and the Transportation Average should always be considered together; that is the two averages must confirm each other. The need to confirm action by both averages would seem fundamentally logical, since if the market is really a barometer of the future trade conditions, investors should bid on prices, both from companies that produce goods and from companies that transporte them in an expanding economy. It is not possible to have a healthy economy un which goods are manufactured but not sold (that is, sent yo the market).

Answer #2. Rentangle.

The rectangle is a trend continuation pattern that is formed during a Ranger trading stage, during a trend break. The rectangle is easily identifiable by two or more reasonably equal maxima and two reasonably equal minima.

Answer #3. I am not very clear on the question. I can only tell you that the cash flow volume for a especific playback period can be between 20 and 21 days.