A principal weakness of the dow theory is a its use

12. A principal weakness of the Dow Theory is:
A) its use of averages instead of indexes.
B) its attention to general market movements.
C) that it pays too much attention to primary trends.
D) the many versions that are available.
Ans: D
13. Which of the following is true regarding the resistance level?
14. Volume and specific calendar time are not considered important in a: 15. One rule of thumb is that a stock is attractive when the relative strength has improved
for at least ______ months.
Page 3

16. Corrections are often followed by ________.
A) channel lines.
B) momentum.
C) reversals.
D) consolidation.
Ans: D
17. What is usually shown at the bottom of a bar chart?
18. Which of the following is a characteristic of the short interest ratio: It is:
19. The advance-decline line: 20. A high short interest ratio is generally interpreted as:
A) a bullish signal.
B) evidence of a downside breakout.
C) a bearish signal.
D) evidence of the presence of odd-lotters.
Ans: A
Page 4

21. A daily accumulation of stocks advancing or declining is used in:
22. Which of the following is not a contrary trading rule?
23. The short interest ratio is found by dividing the number of shares sold short by the
average: