Understanding RSI: A Comprehensive Quiz

What is the primary purpose of the Relative Strength Index (RSI)?

• To measure a stock's volume

• To determine a stock's intrinsic value

• To assess a stock's momentum

• To calculate a stock's dividend yield

What RSI value is typically considered as indicating an oversold condition?

• Exactly 50

• Below 30

• Above 70

• Above 100

When RSI crosses back below which value, it is generally seen as a potential exit signal?

• 70

• 30

• 100

• 50

What does a bullish divergence in RSI indicate?

• Downward momentum is waning

• Stock price is stable

• Volume is decreasing

• Upward momentum is increasing

Why is it important to use RSI in conjunction with other indicators?

• RSI calculates stock dividends

• RSI predicts economic news

• RSI can remain overbought or oversold for long periods

• RSI is always accurate