The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

THE HAnDbOOk Of TECHnICAL AnALySIS

Chapter 3 Review Questions

1. Explain how OHLC data is derived.


2. Why should traders normalize their charts for volatility?


3. What are the factors that increase the significance of OHLC prices?


4. Describe the five measures of constancy in charting.


5. How does chart scaling affect the use of overlay indicators?


6. Explain the connection between contango and negative roll yields.


7. How does the bid‐ask spread affect the reward‐to‐risk ratio?


8. Describe how back‐adjusted continuous charts are constructed.

referenCes

Murphy, John. 1999. Technical Analysis of the Financial Markets. New York: New York

Institute of Finance (NYIF).

Nison, Steve. 1994. Beyond Candlesticks. New York: John Wiley & Sons.

Nison, Steve. 2001. Japanese Candlestick Charting Techniques. New York: New York In-

stitute of Finance (NYIF).

Schwager, Jack D. 1996. Schwager on Futures. New York: John Wiley & Sons.