Question

All the following are characteristics of a tradable market of a trend.

A) High volatility
B) Consistent upward price movement
C) Low liquidity
D) Frequent price reversals

Answer 1

The characteristics of a tradable market of a trend include high volatility, consistent upward price movement, low liquidity, and frequent price reversals.

Step-by-step explanation:

The characteristics of a tradable market of a trend are:

1. High volatility: It means that prices in the market experience large fluctuations over a short period of time. This is due to the constant buying and selling activities of traders.
2. Consistent upward price movement: In a trend, the prices generally move in one direction over a period of time. This could be an upward or downward movement.
3. Low liquidity: Liquidity refers to the ease of buying and selling in a market. In a tradable market of a trend, there may be lower liquidity compared to other markets, meaning it may be harder to find buyers or sellers.
4. Frequent price reversals: Price reversals occur when the direction of the price movement changes. In a tradable market of a trend, there may be frequent reversals, indicating that the trend is not as consistent.