According to Technical Analysts, Pricing Patterns Such as the Head

question 53

Multiple Choice

According to technical analysts, pricing patterns such as the head and shoulders are indicators of potential:

• A)reversals from the main trend line.
• B)upcoming corrections which will return the market to the current main trend line.
• C)increasing strength for the main trend line.
• D)decreasing market activity.
• E)increasing market activity.

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Definitions:

Alternative Hypothesis

The hypothesis that proposes there is a statistically significant difference between two or more sets of data, contrasting the null hypothesis.

Region of Rejection

The range of values for which the null hypothesis is rejected in favor of the alternative hypothesis in hypothesis testing.

p < .05

Indicates that the probability of the observed data occurring under the null hypothesis is less than 5%, suggesting statistical significance.

Null Hypothesis

The presumption of no association or effect between variables, a stance taken until evidence suggests otherwise.