1. The statement "When entering a trade, a low risk strategy is buying in a support zone" is:
A] Always True B] Always False
C] Neither Always True Or Always False

2. When day trading, are you taking advantage of short-term trends?
A] Yes B] No

3. When a commodity rises to a price level that exceeds the last price high set four weeks earlier, it typically means:
A] Buy The Commodity Immediately B] A Double Top
C] Short The Commodity Immediately
D] Wait Another Week Before Taking Any Action

4. When a price shock moves prices your way, should you keep holding the trade?
A] Yes B] No

5. Chaos, in relation to trading, means:
A] Randomness B] New Information C] Madness
D] Get Out Of Trading

6. What is the best, most accurate measure of market momentum?
A] RSI B] Stochastics C] Oscillator
D] Bullish / bearish consensus

7. A market guru tells you to buy when a 10 day exponential moving average crosses above a rising 30 days simple moving average, and to sell when the reverse is true. This approach is useful when:
A] the investor wants to smooth out whipsaws
B] the investor wants a mechanical trading system
C] the investor wants to follow long term trends
D] the investor wants to buy into weakness and sell into strength

8. A good trading strategy is to sell when a support zone
A] is broken B] is located below a previous support zone C] neither [a] or [b] D] both [a] and [b]

9. A stock trades between $16 and $20 for five consecutive weeks. Then it rallies to $23 ½ on a sharp increase in volume. The broad market is above a rising 200 day moving average. Under most circumstances, ie, the percentage play, is to:
A] short it immediately with a stop at $25 ½
B] buy it immediately with a stop at $19
C] do nothing for the next few days

10. Consistent success as a trader is elusive because:
A] No one can ever learn enough about the markets to create consistent results.
B] Consistency is a function of one's attitude and few people have developed a truly winning attitude.
C] Consistency is a function of a distinct lack of trading errors and very few traders ever focus on eliminating errors.
D] All of the above.

11. When price and momentum occur at differing rates of change, this is most likely an example of:
A] Confirmation B] Divergence C] Premium D] Spread

12. When there is bullish divergence between a new low in price and a higher low in RSI, you should:
A] Buy immediately B] Sell aggressively C] Wait for price action to confirm the divergence before buying

13. If my stochastic and RSI oscillator have remained overbought for an usually long time, this is most likely a signal that:
A] the market is in a strong uptrend
B] the market is vulnerable to a sharp downward move
C] the market is forming an expanding triangle
D] the market is in a listless consolidation phase

14. What market signal ALWAYS appears at all significant tops and bottoms plus or minus one bar on whatever time frame you are observing?
A] a green bar B] a fade bar C] a fake bar D] a squat bar

15. In trading, a 'fractal' would be considered
A] a part of a spread B] a change in market behavior C] a broken trade D] a bad trade

16. I know that I've completely accepted the risks associated with a trade when:
A] I have decided what the market has to do to tell me the trade isn't working
B] I have put my stop in the market
C] I can get out of a losing trade without the slightest bit of emotional discomfort
D] All of the above

17. A stock is nearing an apex at $29 that has been created by a 5-week descending trendline that started at $33, and an ascending trendline that started at $24. Volume has been waning as the apex was forming. The trend of the broad market is bullish. Based on this information, I would generally
A] buy the stock immediately.
B] buy the stock as it re-enters the apex after having fallen below the rising trendline.
C] buy the stock as it broke the descending trendline on expanding volume.
D] avoid taking a position in circumstances like this.

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