Exercise #6


1.) Taking a look at the 5 Year Yield Index (FVX) chart, we can make which of the following statements:

Your answer was A. The chart has given a triple top buy signal and violated the bearish resistance line. This would suggest rising prices for the FVX and rising rates.

Correct! The chart is on a triple top buy signal and the trend is now positive. If the trend is positive for the FVX, that would suggest higher rates since the FVX is the 5 Year Yield Index which is the actual measure of the rate itself.

Go to the next question.