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WorksheetsTechnical Analysis Day 5 - MACD
Total questions: 10
Worksheet time: 5mins
Which of the following is NOT true about MACD?
MACD tracks the volume of a specific stock
MACD uses moving averages
MACD can signal price reversal
MACD can identify the coming change of direction of the stock price
If your MACD is oscillating far from each other regardless of direction, what can we infer?
there is going to be a spike in volume
there is going to be a sudden change of MACD direction
the trend (whether downtrend or uptrend) is strong
momentum of the stock is getting weaker
This refers to moving averages coming together. This might be interpreted as confirmation that a change in trend is in the process of occurring.
Convergence
Divergence
Signal Line
Histogram
This refers to two moving averages moving apart, indicating that the trend of the stock could be strengthening.
Convergence
Divergence
Signal Line
Histogram
TRUE or FALSE: MACD is used for both its trend following and price reversal qualities.
TRUE
FALSE
TRUE or FALSE: MACD can track prices of the stock but not the how volume is distributed in it.
TRUE
FALSE
TRUE or FALSE: To indicate a bullish trend, the MACD line must be oscillating above your signal line.
TRUE
FALSE
What is the standard MACD setup?
MACD (12,26,9)
MACD (5,42,5)
MACD (9,42,5)
MACD (12,42,9)
TRUE or FALSE: If price is making a high while the MACD line is declining (called “negative divergence” or “bearish divergence”), this could indicate that price could fall.
TRUE
FALSE
TRUE or FALSE: If price is making a new low while the MACD line is increasing (called “positive divergence” or “bullish divergence”), this could indicate that price could rise.
TRUE
FALSE
