Study Guide for Technical Analysis Explained Fifth Edition

Book Preface

This study guide has been designed as an adjunct to the fifth edition of Technical Analysis Explained. The questions are presented in several forms: multiple choice, matching answers, and fill-in-the-blanks. Since technical analysis is a visual art, concerned with chart interpretation, questions featuring charts have been included as much as possible.

Where necessary, the answers contain a narrative by way of explanation, which readers are encouraged to review closely to better understand the material. In cases where charts require interactive action by the reader, the answer is visual and cannot be clearly defined, as with a letter for a multiple-choice question or a word required in fill-in-the-blank questions. Please refer to the charts printed in the answer chapters for explanation. Some questions ask for blanks to be filled in. In most cases, the first letter of the answer is provided in order to give you some guidance.

Each chapter of Technical Analysis Explained, with the exceptions of Chapter 20, “Putting the Indicators Together,” and Chapter 35, “Checkpoints for Identifying Primary Stock Market Peaks and Troughs,” has been allocated a quiz. Their sizes vary, depending upon the length of material contained in the book.

Readers are advised to first study the relevant chapters in Technical Analysis Explained and then proceed to the testing phase. A brief summary of the subject matter contained in each individual quiz is included at the beginning of each Study Guide chapter, under the heading “Subjects to Be Covered.” This is a partial list of the more important subjects covered by the quiz and is included as a guide. By making a more careful study of these topics, the reader will be in a better position to answer the various questions more accurately.

If less than 70 percent of the questions are answered correctly, it is suggested that further study take place. This should not be done right away. A better approach is to read through more chapters and come back at a later date to the problem ones. In this way there will be less of a tendency to cram or force the learning process, but to let it evolve in a more leisurely and thoughtful way.