Academy Technical Indicators Subject Test
3

Technical Indicators — Subject Test

20 questions · Multiple choice · Pass with 70% · Results shown at the end
Question 1 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
0 of 20 answered
Question 2 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
0 of 20 answered
Question 3 of 20
What do Bollinger Bands measure?
A
Price direction
B
Market volatility
C
Trading volume
D
RSI levels
0 of 20 answered
Question 4 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
0 of 20 answered
Question 5 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
0 of 20 answered
Question 6 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
0 of 20 answered
Question 7 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
0 of 20 answered
Question 8 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
0 of 20 answered
Question 9 of 20
What period is the standard RSI setting?
A
7 periods
B
14 periods
C
21 periods
D
50 periods
0 of 20 answered
Question 10 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
Question 11 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
0 of 20 answered
Question 12 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
0 of 20 answered
Question 13 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
0 of 20 answered
Question 14 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
0 of 20 answered
Question 15 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
0 of 20 answered
Question 16 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
0 of 20 answered
Question 17 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
0 of 20 answered
Question 18 of 20
What does RSI stand for?
A
Relative Strength Index
B
Random Signal Indicator
C
Real Stock Index
D
Resistance Support Index
0 of 20 answered
Question 19 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
0 of 20 answered
Question 20 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
0 of 20 answered
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