Technical analysis quiz · TradeBridge IB

1.Which sequence of swings describes an uptrend?

Lower highs and lower lowsRoughly equal highs and lowsLower highs and higher lowsHigher highs and higher lows

2.In an uptrend, the most recent higher low is 1.1060. Price then closes at 1.1040. What has happened?

A new uptrend has been confirmedA break in structureA golden crossBullish divergence

3.Why are support and resistance best drawn as zones rather than single lines?

Because platforms cannot draw thin linesBecause zones guarantee the level will holdBecause price rarely turns at exactly the same number each timeBecause round numbers never matter

4.EUR/USD breaks above long-standing resistance at 1.1200, then later dips back to 1.1200 and holds. What is this called?

Role reversal, with old resistance acting as supportA death crossBearish divergenceAn inside bar

5.The last five closes are 1.1000, 1.1010, 1.1030, 1.1020 and 1.1040. What is the 5-period SMA?

1.10201.10301.10401.1010

6.What is the main drawback shared by all moving averages?

They only work on daily chartsThey cannot be calculated for currency pairsThey lag price because they are built from past dataThey always predict reversals too early

7.The average gain over 14 periods is 15 pips and the average loss is 10 pips. What is the RSI?

40507560

8.Price makes a higher high at 1.1180, but RSI makes a lower high than at the previous peak. What does this suggest?

A guaranteed reversal on the next candleBearish divergence: upward momentum may be weakeningThe trend is accelerating stronglyRSI is broken and should be ignored