21. A black real body in candle charting means that a. the close is higher than

Question

21. A black real body in candle charting means that a. the close is higher than the open b. the close is lower than the open c. the open is higher than the low d. the current session's close is lower than the prior session's close e. none of the above 22. A trendline is helpful in determining . overbought or oversold market conditions when a price reversal has taken place the cyclical interval between bull and bear markets a probable price target for the extent of the price move one of the above

Explanation / Answer

21. A black real body in candle charting means that the close is lower than the open.

Therefore correct answer is option b. the close is lower than the open

In Japanese candlestick charting that is used in technical analysis of stocks, real body shows gap between opening and closing price of a stock for a particular period. If the closing is higher than opening price, the color of real body is white and if the closing is lower than opening price, the color of real body is black. A black real body in candle charting shows a bearish trend.

22. A trend line is helpful in determining when a price reversal has taken place

Therefore correct answer is option b. when a price reversal has taken place

In a technical analysis, a trend line is a straight line which is formed by connecting two or more prices of stock over certain interval and then extends it to the future to know the future trends. The trend line shows support or resistance in the stock prices and used to analysis that when a price reversal or discontinuation of one trend has taken place.

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