Quizzes 66 to 68

Fibonacci numbers are?

A) A very important part of technical analysis
B) useless in technical analysis
C) they don’t make sense
D) all of the above

The wrong answers are B) useless in technical analysis, C) they don’t make sense, and D) all of the above.

The correct answer is A) a very important part of technical analysis. Fibonacci numbers are used by traders to identify potential support and resistance on trading charts.

The most important Fibonacci ratio is?

A) 38.2%
B) 50%
C) 61.8%
D) 23.6%

The wrong answers are A) 38.2%, B) 50%, and D) 23.6%.

The correct answer is C), 61.8%. This area tends to attract a lot of interest by traders on pullbacks.

Elliott Wave theory is?

A) A book
B) a trading strategy
C) a movie
D) none of the above

The wrong answers are A) a book, C) a movie, and D) none of the above.

The correct answer is B) a trading strategy. Elliott Wave theory is based upon the market often making a certain amount of waves as it goes higher or lower. Traders will count these waves to discern where the market may go next.

In trading, the golden ratio is?

A) The 38.2% ratio
B) the 61.8% ratio
C) the 50% ratio
D) the 23.6% ratio

The wrong answers are A) the 38.2% ratio, C) the 50% ratio, and D) the 23.6% ratio.

The correct answer is B) the 61.8% Fibonacci ratio.

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