Technical Analysis Indicators Quiz

What does a negative MACD value indicate?

• Positive momentum

• Negative momentum

• No momentum

• Neutral momentum

What does a positive MACD value indicate?

• Positive momentum

• Negative momentum

• No momentum

• Neutral momentum

What does the magnitude of the MACD value convey?

• Strength of the trend

• Volatility of the stock

• Market sentiment

• Price movement direction

What is the 9-day signal line in MACD used for?

• To identify the trend direction

• To calculate the MACD value

• To confirm the MACD line crossover

• To calculate the moving averages

What is the upper band in Bollinger Bands based on?

• Volatility index

• Moving average convergence

• 20-day EMA

• 2 standard deviation of the middle line

When should a trader consider selling based on Bollinger Bands?

• When the price touches the upper band

• When the price touches the lower band

• When the price is at the average

• When the price is at the moving average

What does an envelope expansion in Bollinger Bands indicate?

• Weak momentum

• Strong momentum

• Sideways market

• Trending market

How should a trader adjust their bet size based on indicators?

• Decrease bet size when indicators confirm

• Ignore indicators for bet size

• Bet size remains constant regardless of indicators

• Increase bet size when indicators confirm

What is the main purpose of using technical indicators in trading?

• To replace fundamental analysis

• To predict future stock prices

• To confirm trading decisions

• To make all trading decisions

When does the MACD line cross the centerline from negative to positive territory?

• When there is a weak trend

• When there is a strong trend

• When there is a divergence between the two averages

• When there is a convergence between the two averages