Support, Resistance and Market Gaps Quiz

1 point(s)

What best describes a support level in technical analysis?

A level where buying interest overcomes selling pressure

Correct Incorrect Correct answer

A point where the price of a stock is expected to fall

Correct Incorrect Correct answer

The highest price level of a stock in a year

Correct Incorrect Correct answer

A trend line connecting the lowest points of price movements

Correct Incorrect Correct answer

1 point(s)

What is a breakaway gap typically indicative of in market trading?

Continuation of an existing trend

Correct Incorrect Correct answer

Start of a new trend

Correct Incorrect Correct answer

End of a trend period

Correct Incorrect Correct answer

A common gap that gets filled quickly

Correct Incorrect Correct answer

1 point(s)

In the context of ‘role reversal’ in technical analysis, what happens when a resistance level is broken?

It becomes a new support level

Correct Incorrect Correct answer

It disappears completely

Correct Incorrect Correct answer

It becomes an even stronger resistance level

Correct Incorrect Correct answer

It has no further significance

Correct Incorrect Correct answer

1 point(s)

Psychological levels in trading refer to price levels set by financial regulators.

True

Correct Incorrect Correct answer

False

Correct Incorrect Correct answer

1 point(s)

An exhaustion gap is a signal for the continuation of an existing trend.

True

Correct Incorrect Correct answer

False

Correct Incorrect Correct answer

3 point(s)

Match the types of gaps with their descriptions.

Sort elements

Signal the start of a new trend
Indicate the continuation of an existing trend
Occur at the end of a trend period

Breakaway Gaps

Correct Incorrect Correct answer

Runaway Gaps

Correct Incorrect Correct answer

Exhaustion Gaps

Correct Incorrect Correct answer

3 point(s)

Connect the trading concepts with their meanings.

Sort elements

A price level where significant buying interest may prevent further price decline
A price level where significant selling pressure may prevent further price increase
Round numbers or significant historical prices that attract traders' attention

Support Level

Correct Incorrect Correct answer

Resistance Level

Correct Incorrect Correct answer

Psychological Levels

Correct Incorrect Correct answer

1 point(s)

Arrange these market phenomena based on their typical occurrence in a trend lifecycle: Breakaway Gap, Exhaustion Gap, Runaway Gap.

Correct Correct Answer Incorrect

View Answers:

1 point(s)

Rank these levels based on their potential to act as turning points in price action, from strongest to weakest: Psychological Levels, Support Levels, Resistance Levels.

Correct Correct Answer Incorrect

View Answers:

1 point(s)

Reflect on how the understanding of support, resistance, and market gaps can influence your trading decisions and strategies.

This response will be awarded full points automatically, but it will be reviewed and possibly adjusted after submission.

Support, Resistance and Market Gaps Quiz