Technical Indicators Subject Test

Question 1 of 20

What is RSI divergence?

A

RSI and price moving in same direction

B

RSI moves opposite to price — potential reversal signal

C

RSI stuck at 50

D

RSI and volume diverging

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Question 2 of 20

When is RSI divergence most effective?

A

In the middle of a trend

B

At key support and resistance levels

C

When volume is low

D

When price is flat

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Question 3 of 20

What does the MACD histogram show?

A

Price movement

B

The difference between MACD line and signal line

C

Volume

D

RSI levels

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Question 4 of 20

What period is the standard RSI setting?

A

7 periods

B

14 periods

C

21 periods

D

50 periods

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Question 5 of 20

Study these Bollinger Bands:

The Bollinger Bands are squeezing tight — what does this signal?

A

High volatility right now — sell immediately

B

Low volatility — a big move is coming soon

C

Price is overbought

D

Strong trend will continue forever

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Question 6 of 20

What does RSI stand for?

A

Relative Strength Index

B

Random Signal Indicator

C

Real Stock Index

D

Resistance Support Index

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Question 7 of 20

What is the best use of technical indicators?

A

Use one indicator only

B

Use indicators to confirm price action signals

C

Replace price action completely

D

Trade against indicator signals

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Question 8 of 20

Look at these moving averages:

The short MA crossed ABOVE the long MA — what is this called?

A

Death Cross — bearish signal

B

Golden Cross — bullish signal

C

RSI Divergence

D

Bollinger Squeeze

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Question 9 of 20

What do Bollinger Bands measure?

A

Price direction

B

Market volatility

C

Trading volume

D

RSI levels

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Question 10 of 20

What is the MACD signal line?

A

A 26 period EMA

B

A moving average of the MACD line

C

The histogram

D

The zero line

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Question 11 of 20

Look at this RSI reading:

RSI is below 30 — will you BUY here immediately?

A

Yes — always buy when RSI is below 30

B

No — oversold means potential bounce but needs confirmation first

C

Yes — RSI below 30 is a guaranteed reversal

D

No — RSI below 30 means sell more

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Question 12 of 20

What does price walking outside Bollinger Bands mean?

A

Immediate reversal signal

B

Very strong trend — do not fight it

C

Volume is low

D

RSI is at 50

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Question 13 of 20

What is a Death Cross?

A

When price hits all time low

B

When a short MA crosses below a long MA

C

When RSI hits 30

D

When MACD goes negative

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Question 14 of 20

What is Volume Profile?

A

Total volume per day

B

Distribution of volume at specific price levels

C

RSI calculated with volume

D

Moving average of volume

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Question 15 of 20

What is a Moving Average?

A

The highest price in a period

B

Average price over a specific number of periods

C

The closing price only

D

A volatility measure

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Question 16 of 20

What does high volume on a breakout confirm?

A

The breakout is likely fake

B

The breakout has strong momentum and is more reliable

C

Price will reverse

D

RSI is overbought

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Question 17 of 20

Study this RSI chart carefully:

RSI is above 70 — will you SELL here immediately?

A

Yes — RSI is overbought so sell now

B

No — overbought means potential reversal but wait for confirmation

C

Yes — always sell above 70

D

No — RSI above 70 means buy more

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Question 18 of 20

What does OBV measure?

A

Open price minus close price

B

Cumulative volume flow to confirm price trends

C

Average true range

D

Moving average crossover

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Question 19 of 20

What does MACD stand for?

A

Moving Average Convergence Divergence

B

Market Analysis Chart Display

C

Mean Average Calculation Data

D

Moving Asset Chart Direction

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Question 20 of 20

What is the difference between SMA and EMA?

A

SMA is faster than EMA

B

EMA gives more weight to recent prices than SMA

C

They are identical

D

SMA uses volume data

0 of 20 answered