Page 642 - How to Make Money in Stocks Trilogy

Test Your Knowledge 471

12. How many pullbacks occur during an ascending base?
A. 1
B. 2
C. 5
D. 3
13. You should not chase a stock when it is extended in price more than
____ past a correct buy point.
A. 3%
B. 5%
C. 7%
D. 10%
14. In this chart pattern, a stock usually doubles in price over a four-to-
eight-week time period:
A. Base on top of a base
B. High tight flag
C. Ascending base
D. Flat base
15. In a double bottom base, the “shakeout” occurs
A. at the second bottom
B. at the first bottom
C. just prior to the pivot point
D. when the current stock price equals or exceeds the previous high
16. ____ out of 4 stocks follow the trend of the general market.
A. 1
B. 2
C. 3
D. 4
E. 5
17. Most of the trading activity in the market is done by
A. individual investors
B. day traders
C. hedge funds
D. institutional investors
18. Which of the following are signals that a stock may be topping?
A. Climax top
B. Lagging relative strength
C. Change in trend
D. All of the above