No explanation is needed. Each question carries 2 marks. 1. 10. 11. 12. 13. 14. 15. When the exchange rate of Yen changes from 80 to 90, US Dollar appreciates against Yen. Currently, there are 50 constituent stocks of the Hang Seng Index. Generally speaking, the duration of a bull market is longer than the duration of a bear market. The %BB can be negative. When the closing price today is lower than the closing price of yesterday, the candlestick for today is plotted in black. If the 10-day WMA is always greater than the 10-day SMA, then we know that the price is in an uptrend. The validity of a Hammer can be reinforced by a long white candlestick in the next trading day. The probability for an ascending triangle with an upside breakout is higher than that for a symmetrical triangle. Generally speaking, a stock is overbought when the %BB is greater than 100%. Sharp price changes tend to occur after the Bollinger Bands has been too narrowed. When short-term moving average, medium-term moving average and long-term moving average are very close to each other, it represents a strong uptrend. After a prolonged downtrend, if the price of a stock rises decisively, on closing basis, from below to above a medium-term moving average, it is considered as bullish. Trends can be sideway. If a shorter period moving average crosses over a longer period moving average from below to above, it is considered as bullish. When the n-day moving average falls, then the n-day Bollinger Bands will become narrower. Section B: Short Question (40 marks) Fill in the following table for: 1. daily closing prices (6 marks) 2. 5-day WMA (5 marks) 3. 5-day EMA (9 marks) 4. 10% 5-day SMA channel (10 marks) 5. 5-day Bollinger Bands with 2 standard deviations (10 marks) SMA Channel Bollinger Bands Close WMA EMA Upper Lower Upper Lower Bound Bound Bound Bound Day 1 11.85 Day 2 9.1 -- -- -- Day 3 13.65 -- -- -- -- Day 4 17.2 -- -- -- Day 5 14.32 Day 6 14.7893 Day 7 16.566 Day 8 13.365 Day 9 16.75 Day 10 10.4204