A Technical Analyst Would Consider the Following a Strong Buy

question 113

Multiple Choice

A technical analyst would consider the following a strong buy signal:

• A) a graph of declining prices ends in a trough followed by an upward trend that breaks through the declining trend channel.
• B) a graph of increasing prices ends in a peak followed by a downward trend that breaks through the rising trend channel.
• C) a graph begins to trade in a flat trend after it breaks out of its rising trend channel.
• D) a graph begins to trade in a declining trend after it breaks out of its flat trend channel.
• E) a graph begins to trade in a flat trend with high volume.

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Definitions:

Slab Pull

A mechanism that contributes to plate tectonics, involving the subduction of oceanic plates pulling the trailing lithosphere into subduction zones.

Asthenosphere

The upper mantle's region directly beneath the lithosphere, characterized by high viscosity, mechanical weakness, and ductile deformation.

Oceanic Lithosphere

The rigid outer layer of the Earth under the ocean basins, composed of the crust and upper mantle that is specifically associated with oceanic regions.

Ridge Push

A tectonic process driven by gravitational forces that cause the spreading of the seafloor away from oceanic ridges.