- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 56. Technical Analysis
- Subject 4. Chart Patterns
CFA Practice Question
Two comparable highs and two comparable lows will most likely form (a) ______.
B. rectangle
C. double tops and bottoms
A. symmetrical triangle
B. rectangle
C. double tops and bottoms
Correct Answer: B
One trendline connects the two high prices and one trendline connects the two low prices. A rectangle patterns can be formed with these two parallel trendlines.
User Contributed Comments 2
| User | Comment |
|---|---|
| reccy | rectangle= 2 comparable tops AND 2 comparable bottoms. Double top: 2 tops rebounding off a resistance (but lows not comparable) |
| tomalot | Double tops and bottoms...sounds like a bunch of open minded dudes having a good time... |