Technical Analysis Indicators Quiz

What does MACD stand for in the context of trading?

• Meaningful Analysis of Company Data

• Moving Average Convergence and Divergence

• Market Analysis and Currency Data

• Maximum Average Calculation and Distribution

What does the MACD indicator measure?

• Trend Reversal

• Volatility

• Market Sentiment

• Momentum

What is the formula to calculate the MACD line?

• 12 day SMA - 26 day SMA

• 12 day EMA + 26 day EMA

• 12 day SMA + 26 day SMA

• 12 day EMA - 26 day EMA

What is the purpose of the 9-day signal line in MACD?

• To identify the trend direction

• To calculate the standard deviation of the MACD line

• To smooth out the MACD line

• To calculate the average of the MACD line

When does the MACD line indicate a bullish momentum?

• When it is below the signal line

• When it crosses the centerline from negative to positive territory

• When it crosses the centerline from positive to negative territory

• When it is above the signal line

What does the upper band of Bollinger Bands indicate?

• Overbought level

• Oversold level

• Trend reversal

• Market volatility

When should a trader consider selling based on Bollinger Bands?

• When the price is above the upper band

• When the price is below the lower band

• When the price touches the lower band

• When the price touches the upper band

In which type of market does the Bollinger Bands indicator work well?

• Trending market

• Sideways market

• Volatility market

• Bearish market

How should a trader adjust their bet size based on indicator confirmation?

• Decrease bet size when indicators confirm

• Bet size should not be adjusted based on indicators

• Ignore indicators when placing a trade

• Increase bet size when indicators confirm

What is the main purpose of technical indicators in trading?

• To replace fundamental analysis in trading

• To confirm trading decisions based on other factors

• To be the sole basis for trading decisions

• To predict future stock prices accurately