1. The stochastic indicator is based on the observation that

A. As prices fall, the closing price tends toward the midpoint of the rang

B. As prices rise, the closing price tends towards the low price of the range

C. As prices fall, the closing price tends toward the high of the range

D. As prices rise, the closing price tends toward the upper end of the range

E. None of the above

2.The stochastic indicator is constructed using two lines

A. A fast line and a slow line

B. Using price and volume

C. Using price, time and volume

D. Using two moving averages

E. None of the above

3.The contrary opinion is a useful investment tool because

A. The little guy is always wrong

B. Traders are often most bearish at market tops

C. Institutional investors have access to better information

D. Short term oriented participants are fully committed to the long side and are more likely to become sellers than buyers

4.Which technical statement is most accurate

A. Highs and lows on a price chart in a trading range often correspond with extreme readings on oscillators

B. Oscillators are generally less useful in trading range markets

C. Give more useful oversold or overbought signals in early stages of a rally or decline ?

D. Tend to give more false overbought or oversold signals in later stages of a rally or decline