In the Context of a Point and Figure Chart, a Horizontal

question 73

Multiple Choice

In the context of a point and figure chart, a horizontal band of Xs and Os is a ________.

• A) buy signal
• B) sell signal
• C) congestion area
• D) trend reversal

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Definitions:

Sales

The transactions involved in selling goods or services in the normal course of business, generating revenue for the company.

DOL

Degree of Operating Leverage; a measure of a company's fixed costs as a percentage of its total costs, indicating how earnings before interest and taxes (EBIT) change in response to a change in sales volume.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.