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WorksheetsChapter 14 class quiz
Total questions: 10
Worksheet time: 30mins
___ is a momentum indicator, or oscillator, that measures how well a stock is performing against itself by comparing the strength of the up days versus the down days.
relative strength indicator (RSI)
moving average (MA)
rate of change (ROC)
___ = 100 - [100]/[1+RS].
The above formula is used to compute____
relative strength index (RSI)
rate of change (ROC)
moving average (MA)
Momentum indicators are dependent indicators as they are best used with other indicators. Which one of the following is the correct reason for this?
momentum indicators tell the traders about the magnitude and direction of price movement.
momentum indicators tell about the volume of trade.
momentum indicators do not tell the traders the potential direction of the price.
momentum indicators measure the rates of rises of price.
RSI is a leading type of indicator.
True
False
the RSI graph is divided into three zones or regions which are the zone below 30, the zone between 30 to 70, and the zone above 70. Zone X in the figure shown is called _____
oversold
overbought
neutral
traders can wait until the RSI falls below the 70 level to take a ____ position.
sell
buy
neutral
when the RSI is above the 30 level, the share price is going to ____
increase
decrease
be constant
a reading above 70 is considered ____, while a reading below 30 is considered as ____.
bullish; bearish
bearish; bullish
oversold; overbought
primary; secondary
RSI can be plotted for any time span. But, the most widely used time span is _____
28-day
24-month
14-day
18-month
generally speaking, the longer-term spans offer slower and more deliberate movements that enable easier trendline construction.
true
false
