Technical Indicators and RSI Quiz

What are technical indicators in trading?

• Weather forecasts affecting stock prices

• Tools used by traders to analyze the price movement of a security

• Financial reports released by companies

• Government regulations on stock trading

What is the difference between leading and lagging indicators?

• Leading indicators signal the possible occurrence of an event, while lagging indicators confirm an ongoing trend

• Leading indicators are used for long-term trading, while lagging indicators are used for short-term trading

• Leading indicators confirm an ongoing trend, while lagging indicators signal the possible occurrence of an event

• Leading indicators are based on fundamental analysis, while lagging indicators are based on technical analysis

What is the range in which an oscillator typically oscillates?

• 0 to 100

• 25 to 75

• 0 to 50

• 50 to 100

What does the Relative Strength Index (RSI) oscillate between?

• 0 and 50

• 50 and 100

• 25 and 75

• 0 and 100

When is a security considered oversold according to RSI?

• When RSI is between 70 and 100

• When RSI is between 50 and 70

• When RSI is between 30 and 50

• When RSI is between 0 and 30

What does a value between 70 and 100 indicate in RSI?

• Undervalued

• Neutral

• Overbought

• Oversold

What does it mean if RSI is fixed in the overbought region for a prolonged period?

• Look for shorting opportunities

• Wait for a trend reversal

• Stay out of the market

• Look for buying opportunities

What is the default period setting for analyzing daily charts using RSI?

• 10 days

• 14 days

• 20 days

• 5 days

What is the formula to calculate RSI?

• 100 - [100 * (1 - RS)]

• 100 - [RS / (1 + 100)]

• 100 - [RS * (1 + 100)]

• 100 - [100 / (1 + RS)]

What does RSI help the trader identify?

• Government policies on stock trading

• Oversold and overbought price areas

• Market volume and liquidity

• Economic indicators affecting stock prices