Trading Strategies Subject Test — TradeSmart Academy

Question 1 of 20

What is trend following strategy?

A

Trading against the trend

B

Trading in the direction of the established trend

C

A scalping strategy

D

A mean reversion strategy

0 of 20 answered

Question 2 of 20

How many bounces should a support level have before trading it?

A

1 bounce is enough

B

At least 2-3 previous bounces

C

No bounces needed

D

10 or more bounces

0 of 20 answered

Question 3 of 20

What confirms RSI divergence before entry?

A

RSI alone is enough

B

A price action confirmation candle after the divergence

C

Volume only

D

Moving average only

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Question 4 of 20

What confirms a valid breakout?

A

Any candle that touches resistance

B

A candle that CLOSES above resistance with high volume

C

Low volume breakout

D

A doji at resistance

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Question 5 of 20

What is scalping?

A

Long term investing

B

Very short term trading targeting small profits many times per day

C

Swing trading

D

Position trading

0 of 20 answered

Question 6 of 20

What are the key components of a trading strategy?

A

Entry rules only

B

Entry rules exit rules risk management and position sizing

C

A good indicator

D

A trading journal

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Question 7 of 20

What is RSI divergence strategy?

A

Buying when RSI is above 70

B

Trading reversals when RSI moves opposite to price

C

Following RSI crossovers only

D

A trend following strategy

0 of 20 answered

Question 8 of 20

What is a breakout strategy?

A

Buying at support

B

Entering a trade when price breaks above resistance or below support

C

A moving average strategy

D

A RSI strategy

0 of 20 answered

Question 9 of 20

What is multiple timeframe analysis?

A

Using only one timeframe

B

Analysing higher timeframes for direction and lower for entry

C

Trading all timeframes simultaneously

D

Ignoring daily charts

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Question 10 of 20

Where do the best MACD signals occur?

A

When MACD is far from zero line

B

Near the zero line where momentum is just starting

C

At all time highs

D

When histogram is at peak

0 of 20 answered

Question 11 of 20

What is a fake breakout?

A

A confirmed breakout

B

Price breaks a level but quickly reverses back

C

A high volume breakout

D

A trend following signal

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Question 12 of 20

What is the Golden Cross in MA strategy?

A

Price hitting all time high

B

Short MA crossing above long MA — bullish signal

C

Death cross

D

RSI at 70

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Question 13 of 20

What is the best entry point in MA strategy?

A

At the exact crossover

B

On a pullback to the MA after the crossover

C

When price is far above MA

D

When MA is flat

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Question 14 of 20

What does price touching lower Bollinger Band signal?

A

Strong sell signal

B

Possible buy — price may bounce back to middle band

C

No signal

D

Guaranteed reversal

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Question 15 of 20

What is backtesting?

A

Trading with real money

B

Testing a strategy on historical data before trading live

C

Forward testing

D

Paper trading with live data

0 of 20 answered

Question 16 of 20

What does Bollinger Band squeeze mean?

A

Low volatility forever

B

A big price move is coming soon

C

Trend is ending

D

Volume is decreasing

0 of 20 answered

Question 17 of 20

Which timeframe should you check FIRST?

A

The lowest timeframe

B

The highest timeframe to understand overall direction

C

All at same time

D

Whichever shows a buy signal

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Question 18 of 20

What does MACD crossing above signal line indicate?

A

Bearish signal

B

Bullish momentum signal

C

No signal

D

Sell immediately

0 of 20 answered

Question 19 of 20

What is swing trading?

A

Trading within seconds

B

Holding trades for days to weeks to capture medium term moves

C

Day trading

D

Scalping

0 of 20 answered

Question 20 of 20

What is support and resistance bounce strategy?

A

Buying at resistance

B

Entering trades when price bounces from proven support or resistance levels

C

A breakout strategy

D

A trend following approach

0 of 20 answered