Explain technical analysis assignment

Explain the technical analysis assignment
1. An assumption of technical analysis is that market prices:
A. exhibit identifiable trends and patterns that persist and repeat.
B. are the only information necessary to analyze a freely trading market.
C. reflect supply and demand conditions because actual transactions reflect rational decisions by
buyers and sellers.
2. Which type of price chart requires data on the opening price?
A. Bar chart.
B. Line chart.
C. Candlestick chart.
3. A stock has been in a downtrend for several days. When its price decreases to near $30, many
investors enter orders to buy the stock and the price increases to $31. This is most likely an
example of:
A. a support level.
B. a resistance level.
C. a change in polarity.
4. An analyst who uses the standard deviation of recent prices to identify overbought or oversold
conditions is most likely to employ:
A. Bollinger bands.
B. a Relative Strength Index (RSI).
C. a rate of change (ROC) oscillator.
5. If a stock’s relative strength chart shows an uptrend, the stock is:
A. increasing in price.
B. outperforming a benchmark.
C. increasing on high volume or decreasing on low volume.
6. A technical analyst begins her evaluation of the U.S. equity market by using a computer
algorithm to identify which stocks in the S