CFA Practice Question
Which chart type is the most appropriate to signal the end of a price decline or advance?
B. line chart
C. point and figure chart
A. candlestick chart
B. line chart
C. point and figure chart
Correct Answer: C
User Contributed Comments 2
User | Comment |
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dipu617 | Why? |
NikolaZ | Because once the reversal point is set (usually 3), the bar accurately demonstrates a shift in price trend (upwards to downwards or vice-versa). This shows how prices stop increasing/decreasing and change direction. |