Open interest increases during a trending period

Volume may decline but open interest builds during an accumulation phase

Rising prices and declining volume/open interest indicate a pending change of direction

All of the above

Point-and-Figure

Equivolume

Leaf and stem

Bar/candle

It is a reversal pattern

It occurs when the real bodies of two consecutive candles do not overlap

It occurs when the shadows of two consecutive candles do not overlap

One should buy on dips after a falling window

Identify a main trend

Determine the current status of the main trend by locating the major peaks and bottoms

Look for five wave corrections and three wave sub-trends or extensions

Draw trendlines to determine direction

Change the charting scale to logarithmic

Increase the time frame on the chart

Change the scale to arithmetic

Add the daily opening prices to provide a more visual benchmark of price changes

Members only

Affiliates only

CMT candidates

All of the above

Pattern analysis is more complex than for stocks

Futures prices offer a greater variety of chart formations than stocks

Only the most basic techniques are generally used such as a one box breakout

Incorporating open interest data into a point and figure chart makes this type of chart more useful for futures

A double-bottom and double top can be continuation patterns

Only a double-bottom can be a continuation pattern

Only a double-top can be a continuation pattern

Neither can be continuation patterns. They do not exist in Point and Figur

A

B

C

D

Find a market with a long consolidating base and high volatility

Liquidate positions at prior major resistance points, top formations or the break of a major support line

Sell whenever a major support level is tested but not breached

Sell when there is a major price retrenchment in a bull market