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Chapter 3: Momentum indicators and MA

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following indicators track the closing average prices of stocks at a given period?

a)

RSI

b)

PSAR

c)

SMA

d)

MACD

2.

Smooth Moving Average or SMA can also be used as support and resistance in mapping out stock prices.

a)

YES

b)

NO

3.

Past performance of the stock can be used to predict its future movement.

a)

YES

b)

NO

4.

What is a golden cross?

a)

Moving average crossover by two EMAs to the downside

b)

Moving average crossover by two EMAs to the upside

5.

What tells you the number of shares that were bought and sold in a particular time frame (usually a day). You can see this shown as a bar graph at the bottom of the stock chart.

a)

Moving Averages

b)

Volume

c)

Opening Price

d)

Closing Price

6.

Identify the Trend using MAs

a)

Up

b)

Down

c)

Ranging

7.

Identify the Price Action using MAs (Yellow line)

a)

Breakout

b)

Breakdown

c)

Indecision

8.

Identify the Price Action using MAs (Blue line)

a)

Breakout

b)

Breakdown

c)

Indecision

9.

Which of the following is NOT an important consideration in trading using Moving Averages?

a)

price must be above your MAs

b)

price must have crossed above your longer MAs

c)

price must be far from your significant MAs

d)

using MAs in a sideways market

10.

In our use of MAs, what very important data does it track in your price chart?

a)

highest price of the day

b)

closing price of the day

c)

lowest price of the day

d)

opening price of the day

11.

Which of the following accurately describes the difference between your SMA and EMA?

a)

sensitivity each one shows to changes in the data used in its calculation

b)

SMA gives a higher weighting to recent prices, while the EMA assigns an equal weighting to all values.

12.

If EMA gives a higher weighting to recent prices, while the SMA assigns an equal weighting to all values, which of them is more SENSITIVE to price fluctuation?

a)

SMA (Smooth Moving Average)

b)

EMA (Exponential Moving Average)

13.

This occurs when a short-term SMA breaks above a long-term SMA

a)

golden cross

b)

death cross

14.

Looking at $CEB and relying on your moving averages only, what is the current general sentiment of the stock?

a)

bearish

b)

bullish

15.

Using your MAs, what can be best describe of the Vista Land's stock?

a)

bullish

b)

bearish