A Trading Rule Which Signals Purchase of a Stock If

question 9

Multiple Choice

A trading rule which signals purchase of a stock if it rises X percent and sale of a stock if it falls X percent is known as a

• A) Breakout.
• B) Short sale.
• C) Sieve.
• D) Filter.
• E) Relative strength.

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Definitions:

Absorption

The process by which one substance becomes taken up or incorporated into another substance, such as a gas being absorbed by a liquid.

Wavelength

The distance between consecutive crests or troughs in a wave, often used in the context of electromagnetic radiation.

Electromagnetic Radiation

Energy that travels through space in the form of waves, encompassing a broad spectrum from radio waves to gamma rays.

Absorption

The process by which one substance takes up or holds another substance at the interface between them or within its internal structure.