Technical Analysis [Exam Prep - fill in the blanks]

The capital market is a segment of the financial market where businesses raise capital by issuing __________.

securities.

The term __________ encompasses capital markets, money markets, and other financial institutions.

financial market.

The investment process involves the selection of an asset based on investment objective, risk tolerance, __________, and decision-making skills.

knowledge.

Companies issue __________ instruments to obtain funds in the capital market.

financial.

Investors must evaluate the level of __________ they are willing to accept.

risk.

Investments are made not only for profit but also to hedge against __________ and economic uncertainty.

inflation.

Successful investment requires an understanding of __________ and market trends.

financial instruments.

Decision-making skills and __________ significantly impact investment choices.

risk tolerance.

Investors make decisions based on their investment __________, which may include wealth accumulation or risk hedging.

objective.

The investment consideration of __________ involves how much risk the investor is willing to take.

risk tolerance.

Investors may adopt either an aggressive or __________ decision-making style.

conservative.

Technical analysis uses historical price and volume data to predict __________ trends.

future.

Fundamental analysis assesses a company's financial health through economic __________ and financial statements.

indicators.

Portfolio analysis focuses on __________ to optimize returns and minimize risk.

asset diversification.

Financial econometrics applies __________ methods to analyze financial data and market trends.

statistical.

Rate of return analysis evaluates price changes and __________ performance.

investment.

Market liquidity refers to the ease with which securities can be __________ or sold without affecting prices.

bought.

A market with high liquidity allows for quick transactions at __________ prices.

stable.

Investors should avoid overly speculative strategies, as excessive risk can lead to __________.

bankruptcy.

A balanced portfolio helps reduce risk through __________.

diversification.

Charles Dow was the founder of __________ Theory and the first to introduce stock market indices.

Dow.

The main purpose of Dow Theory is to recognize the emergence of __________ or bear markets.

bull.

Market prices reflect all available information, including economic and __________ factors.

psychological.

The primary trend in Dow Theory lasts from __________ to several years.

a year.

In the accumulation phase, informed investors buy stocks at __________ prices.

low.

Averages must confirm each other; if one index shows a new trend, another should __________ it.

confirm.

Volume should __________ in the direction of the main trend, confirming strength.

increase.

A trend is considered in effect until a definite __________ occurs.

reversal.

Dow focused on __________ prices, not intraday fluctuations, to determine trends.

closing.

Support levels act as buying zones in an __________.

uptrend.

A bearish reversal pattern indicates a shift from bullish to __________ trends.

bearish.

An ascending triangle is a bullish continuation pattern with a horizontal __________ line.

resistance.

Support levels are previous __________ points on the chart where demand is strong.

low.

Breaking a __________ suggests a potential trend reversal.

trendline.

Flags and pennants typically indicate a brief __________ before the trend resumes.

merging.

The cup and handle pattern is considered a __________ continuation pattern.

bullish.

High volume in breakouts confirms the __________ of a breakout.

strength.

A downtrend consists of a series of __________ highs and lower lows.

lower.

Support becomes __________ when a support level is broken.

resistance.

A false breakout is a temporary move beyond support or resistance that quickly __________.

reverses.

A significant break of a trendline suggests a potential __________.

trend reversal.

The number of __________ points meeting a trendline influences its strength.

touch.

An ideal trendline is drawn at around a __________ degree angle.

A rising support line becomes resistance when the price breaks __________ it.

below.

A volume confirmation indicates that a trendline break with high volume is more __________.

valid.

Retracement refers to a temporary reversal in a prevailing trend before continuing in the __________ direction.

original.

Adjusting a trendline may be necessary if it is too far from __________ action.

price.

If an uptrend strengthens, a new __________ trendline may be needed.

steeper.

Decelerating trendlines may be necessary if momentum __________.

weakens.