CAT — Candlestick Charts
4 questions, free to view. Click any question to see the answer and explanation.
The chart below shows the price data for seven shares -A, B, C, D, E, F, and G as a candlestick plot for a particular day. The vertical axis shows the price of the share in rupees. A share whose closing price (price at the end of the day) is more than its opening price (price at the start of the day) is called a bullish share; otherwise, it is called a bearish share. All bullish and bearish shares are shown in green and red colour respectively.
Daily Share Price Variability (SPV) is defined as (Day's high price - Day's low price)/(Average of the opening and closing prices during the day). Which among the shares A, C, D and F had the highest SPV on that day?
D
F
A
C
D
Daily Share Price Variability (SPV):
For A:
= (2400 − 1200) / [(2200 + 1800)/2]
= 1200 / 2000
= 0.6
For C:
= (1400 − 800) / [(800 + 1200)/2]
= 600 / 1000
= 0.6
For D:
= (1200 − 300) / [(500 + 1000)/2]
= 900 / 750
= 1.2
For F:
= (2000 − 1200) / [(1800 + 1600)/2]
= 800 / 1700
≈ 0.47
Hence, D has the highest SPV value.
Daily Share Price Variability (SPV) is defined as (Day's high price - Day's low price)/(Average of the opening and closing prices during the day). How many shares had an SPV greater than 0.5 on that day?
SPV for A = 0.6
For B:
= (2000 − 1400) / [(2000 + 1700)/2]
= 600 / 1850
≈ 0.32
SPV for C = 0.6
SPV for D = 1.2
For E:
= (1400 − 1100) / [(1300 + 1100)/2]
= 300 / 1200
= 0.25
SPV for F = 0.47
For G:
= (1900 − 1000) / [(1200 + 1700)/2]
= 900 / 1450
≈ 0.62
Hence, 4 companies have an SPV value greater than 0.5.
Daily loss for a share is defined as (Opening price - Closing price)/ (Opening price). Which among the shares A, B, F and G had the highest daily loss on that day?
A
B
F
G
A
Daily loss for A:
= (2200 − 1800) / 2200
= 400 / 2200
≈ 0.18
Daily loss for B:
= (2000 − 1700) / 2000
= 300 / 2000
= 0.15
Daily loss for F:
= (1800 − 1600) / 1800
= 200 / 1800
≈ 0.11
Daily loss for G:
= (1200 − 1700) / 1200
= −500 / 1200
≈ −0.42
Hence, Share A recorded the highest daily loss.
What would have been the percentage wealth gain for a trader, who bought equal numbers of all bullish shares at opening price and sold them at their day's high?
100%
80%
50%
72%
80%
The bullish shares are C, D, and G.
The combined opening price of these three shares is:
= 800 + 500 + 1200
= Rs. 2,500
The combined highest price reached during the day is:
= 1400 + 1200 + 1900
= Rs. 4,500
Therefore, the required percentage increase is:
= ((4500 − 2500) / 2500) × 100
= 80%
Want this as a timed attempt?
Log in free to attempt this topic with a real timer, analytics, streaks and bookmarks.