Unit ko samjho · NISM Series XV

Technical Analysis

22 questions is unit mein

Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.

Is unit mein kya hai

A 14-period RSI rises to 74 after a strong advance. Under the conventional interpretation of RSI, this reading is best described as:
After a prolonged uptrend, price forms a left shoulder, a higher head and a lower right shoulder, followed by a decisive break below the neckline. This is conventionally classified as a:
A chartist says a 'golden cross' has occurred. Which event is most consistent with that statement?
A share closes above a resistance zone that has capped price several times. Which additional observation would conventionally make the breakout more credible?
A stock repeatedly failed near ₹520, then later broke above ₹520 decisively and held above it. On a subsequent pullback, a technical analyst would most commonly watch ₹520 as:
Price records a higher swing high, but a momentum oscillator records a lower corresponding high. This combination is conventionally called:
Under the traditional confirmation principle of Dow Theory, evidence of a primary uptrend is stronger when:
For a standard daily candlestick, which four price points are represented?
A price series forms successive higher swing highs and higher swing lows over several weeks. A technical analyst would most commonly classify this as:
Price forms a series of lower highs and higher lows so that two trendlines converge. Before a breakout occurs, this formation is most commonly described as a:
Why is a moving average generally described as a lagging trend indicator?
A standard daily line chart of a security most commonly connects which price from each trading session?
In a well-defined uptrend, a technician draws a rising trendline through successive higher swing lows and then draws a roughly parallel line through swing highs. The two lines together form a:
After a prolonged advance, price tests approximately the same resistance area twice, fails on the second attempt, and then breaks below the intervening trough. This is conventionally interpreted as a:
Price repeatedly meets resistance near ₹500 while successive pullbacks form higher lows. Which pattern best describes this consolidation before a confirmed breakout?
A stock rises sharply, then pauses in a short, narrow consolidation that slopes mildly against the prior advance before breaking upward. This is most consistent with a:
A daily candlestick has an opening price and closing price that are almost identical, although the session traded both above and below those levels. This candle is most commonly called a:
Under the conventional interpretation of MACD, which event is generally viewed as a bullish momentum signal?
If price volatility rises substantially while the moving-average basis is otherwise unchanged, Bollinger Bands will generally:
A stochastic oscillator reading falls below 20. Under the conventional interpretation, this is most commonly described as:
Which statement is most consistent with the traditional Dow Theory hierarchy of trends?
A stock advances through a prior resistance area. Which volume pattern would conventionally provide stronger confirmation of the move?

Zaroori ideas

Practice bank se · 1

A 14-period RSI rises to 74 after a strong advance. Under the conventional interpretation of RSI, this reading is best described as:

An reading above 70 is conventionally described as overbought. That is a condition or momentum indication, not a guarantee of an immediate reversal. Remember: Indicators describe conditions and probabilities. They do not create certainty.

Hint Common mistake: Equating 'overbought' with 'must fall immediately'.

XV-011

Practice bank se · 2

After a prolonged uptrend, price forms a left shoulder, a higher head and a lower right shoulder, followed by a decisive break below the neckline. This is conventionally classified as a:

A completed head-and-shoulders top, particularly after an uptrend and a neckline break, is conventionally treated as a bearish reversal pattern. Remember: Pattern context matters: a head-and-shoulders top is interpreted as a reversal after an uptrend.

Hint Common mistake: Calling the pattern complete before the neckline is broken.

XV-012

Practice bank se · 3

A chartist says a 'golden cross' has occurred. Which event is most consistent with that statement?

A golden cross conventionally refers to a shorter-term moving average crossing above a longer-term moving average, often interpreted as a bullish trend signal. Remember: Know what is crossing what: short-term average above long-term average.

Hint Common mistake: Confusing a golden cross with a death cross.

XV-013

Practice bank se · 4

A share closes above a resistance zone that has capped price several times. Which additional observation would conventionally make the breakout more credible?

Technical analysts commonly regard a supported by stronger-than-usual volume as more credible because participation has expanded with the price move. Remember: Price breakouts are often assessed together with participation indicators such as volume.

Hint Common mistake: Treating any intraday move above resistance as a confirmed breakout.

XV-014

Practice bank se · 5

A stock repeatedly failed near ₹520, then later broke above ₹520 decisively and held above it. On a subsequent pullback, a technical analyst would most commonly watch ₹520 as:

A resistance level that is decisively broken may later act as a support zone. This is a common technical-analysis principle, but it is not guaranteed. Remember: Broken resistance can become support, but technical levels are not certainties.

Hint Common mistake: Treating support or resistance as an inviolable exact price.

XV-015

Practice bank se · 6

Price records a higher swing high, but a momentum oscillator records a lower corresponding high. This combination is conventionally called:

A bearish divergence occurs when price makes a higher high while a momentum indicator fails to confirm and makes a lower high. It can warn of weakening momentum. Remember: Divergence compares the direction of price swings with the direction of an indicator.

Hint Common mistake: Assuming divergence by itself guarantees an immediate reversal.

XV-016

Practice bank se · 7

Under the traditional confirmation principle of Dow Theory, evidence of a primary uptrend is stronger when:

Traditional Dow Theory places importance on confirmation between the major market averages. A primary trend signal is stronger when the relevant averages confirm one another rather than diverge. Remember: Dow Theory emphasises confirmation of broad market trends rather than isolated price moves.

Hint Common mistake: Treating movement in a single security as confirmation of a primary market trend.

XV-017

Practice bank se · 8

For a standard daily candlestick, which four price points are represented?

A candlestick summarises the open, high, low and close for the chosen time period. The body reflects the relationship between open and close, while the shadows/wicks show the high and low. Remember: Candlesticks are visual representations of OHLC price data for a defined period.

Hint Common mistake: Assuming a candlestick directly includes volume or fundamental data.

XV-097

Practice bank se · 9

A price series forms successive higher swing highs and higher swing lows over several weeks. A technical analyst would most commonly classify this as:

An uptrend is commonly characterised by a sequence of higher highs and higher lows. Trend analysis is contextual, and a later break of that structure can signal weakening or reversal. Remember: Trend direction is read from the sequence of swing highs and lows, not from one isolated price move.

Hint Common mistake: Calling a trend from a single up day rather than a sequence of price structure.

XV-098

Practice bank se · 10

Price forms a series of lower highs and higher lows so that two trendlines converge. Before a breakout occurs, this formation is most commonly described as a:

A symmetrical triangle is a consolidation pattern in which highs decline and lows rise, creating converging trendlines. The eventual breakout direction should be observed rather than assumed solely from the pattern name. Remember: Consolidation patterns describe price compression. Breakout direction still requires confirmation.

Hint Common mistake: Assuming a symmetrical triangle always breaks in one predetermined direction.

XV-099

Practice bank se · 11

Why is a moving average generally described as a lagging trend indicator?

A moving average smooths historical price data. Because its calculation uses past observations, it responds with some delay to a new price move. Shorter averages usually react faster than longer averages, but also tend to be more sensitive to noise. Remember: Trend-following indicators trade responsiveness for smoothing. Shorter lookbacks react faster but are noisier.

Hint Common mistake: Calling a lagging indicator useless because it does not predict turning points in advance.

XV-100

Practice bank se · 12

A standard daily line chart of a security most commonly connects which price from each trading session?

A simple line chart commonly plots and connects closing prices over time, giving a clean view of the broad price trend. Remember: Different chart types preserve different amounts of price information.

Hint Common mistake: Confusing the four-price information of a candlestick with the single-series nature of a basic line chart.

XV-140

Practice bank se · 13

In a well-defined uptrend, a technician draws a rising trendline through successive higher swing lows and then draws a roughly parallel line through swing highs. The two lines together form a:

A rising channel is formed by an upward-sloping support trendline and a roughly parallel resistance line containing much of the price movement. Remember: Channels extend the trendline idea by adding a parallel boundary on the other side of price.

Hint Common mistake: Drawing arbitrary parallel lines without anchoring them to meaningful swing points.

XV-141

Practice bank se · 14

After a prolonged advance, price tests approximately the same resistance area twice, fails on the second attempt, and then breaks below the intervening trough. This is conventionally interpreted as a:

A double top is a potential bearish reversal formation. The break below the trough between the two peaks is commonly treated as confirmation. Remember: Reversal patterns are generally more meaningful after an established prior trend and with confirmation.

Hint Common mistake: Calling any two nearby highs a completed double top before the intervening support breaks.

XV-142

Practice bank se · 15

Price repeatedly meets resistance near ₹500 while successive pullbacks form higher lows. Which pattern best describes this consolidation before a confirmed breakout?

An ascending triangle typically combines relatively flat resistance with a sequence of rising lows. It often carries a bullish bias, but confirmation requires a breakout. Remember: Identify consolidation patterns by the geometry of highs and lows, then wait for confirmation.

Hint Common mistake: Treating the pattern's directional bias as a guaranteed breakout.

XV-143

Practice bank se · 16

A stock rises sharply, then pauses in a short, narrow consolidation that slopes mildly against the prior advance before breaking upward. This is most consistent with a:

A bullish flag typically follows a strong upward move, consolidates briefly in a small counter-trend structure, and then resumes higher if the breakout confirms. Remember: Continuation patterns occur within an existing trend and should be interpreted in that context.

Hint Common mistake: Confusing a brief consolidation with a major reversal.

XV-144

Practice bank se · 17

A daily candlestick has an opening price and closing price that are almost identical, although the session traded both above and below those levels. This candle is most commonly called a:

A doji forms when the opening and closing prices are equal or very close, often interpreted as a sign of balance or indecision depending on context. Remember: Candlestick meaning depends on both the candle shape and its location within the broader trend.

Hint Common mistake: Treating a doji by itself as an automatic reversal signal.

XV-145

Practice bank se · 18

Under the conventional interpretation of MACD, which event is generally viewed as a bullish momentum signal?

A conventional bullish MACD signal occurs when the MACD line crosses above its signal line, though confirmation and broader context remain important. Remember: Technical indicators generate signals that should be interpreted with trend and market context.

Hint Common mistake: Treating an indicator crossover as a certainty rather than a signal.

XV-146

Practice bank se · 19

If price volatility rises substantially while the moving-average basis is otherwise unchanged, Bollinger Bands will generally:

are typically set at a chosen number of standard deviations around a moving average. As measured volatility rises, the distance between the upper and lower bands generally widens. Remember: Bollinger Band width is a volatility-sensitive measure, not a fixed percentage range.

Hint Common mistake: Assuming that touching a band automatically means price must reverse.

XV-147

Practice bank se · 20

A stochastic oscillator reading falls below 20. Under the conventional interpretation, this is most commonly described as:

A stochastic reading below 20 is conventionally considered oversold. As with RSI, an oversold condition can persist and does not guarantee an immediate reversal. Remember: Oscillator thresholds describe momentum conditions, not certain future price direction.

Hint Common mistake: Converting 'oversold' into an automatic buy signal.

XV-148

Practice bank se · 21

Which statement is most consistent with the traditional Dow Theory hierarchy of trends?

Traditional Dow Theory distinguishes primary trends from secondary reactions and shorter minor movements. Secondary movements can run against the primary trend without necessarily ending it. Remember: Separate the major trend from shorter counter-trend movements.

Hint Common mistake: Assuming every correction means the primary trend has ended.

XV-149

Practice bank se · 22

A stock advances through a prior resistance area. Which volume pattern would conventionally provide stronger confirmation of the move?

Technical analysts commonly view expanding volume on a breakout as evidence of broader participation and therefore stronger confirmation than a low-volume move. Remember: Price movement is often interpreted together with participation measures such as volume.

Hint Common mistake: Assessing a breakout from price alone without considering whether market participation supports it.

XV-150

Is topic ka lesson padho

RSI (Relative Strength Index)

RSI compares recent gains with recent falls.

Aage padho

Breakout

A breakout is when a stock's or index's price moves past a boundary drawn earlier.

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Bollinger Bands

Bollinger Bands are 2 lines around a price average.

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