Which One of the Following Statements Is Correct Concerning an Open-High-Low-Close

question 17

Multiple Choice

Which one of the following statements is correct concerning an open-high-low-close bar chart?

• A)The prices indicated by the two horizontal lines are the maximum and minimum daily prices.
• B)The upper trendline indicates the support level.
• C)If the overall price movement is downward, the lower trendline is called the channel line.
• D)If the overall price movement is upward, the upper trendline is called the head line.
• E)The final price of the day is indicated by a horizontal line to the left side of the vertical line.

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Definitions:

High-low Method

In cost accounting, a strategy for estimating fixed and variable costs by looking at the peak and bottom activity levels.

Fixed Cost

An expense that does not change with an increase or decrease in the number of goods or services produced or sold.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source.

Least-squares Regression

This is a statistical method used to determine a line of best fit by minimizing the sum of squares of the distances of data points from the line.