Technical Indicators and RSI Quiz

What are technical indicators?

• Tools used by traders to analyze the price movement of a security

• Weather forecasts for trading purposes

• Economic reports released by the government

• Financial statements of a company

What is the difference between leading and lagging indicators?

• Leading indicators are based on fundamental analysis, while lagging indicators are based on technical analysis

• Leading indicators are used for long-term trading, while lagging indicators are used for short-term trading

• Leading indicators signal the possible occurrence of an event, while lagging indicators confirm an ongoing trend

• Leading indicators confirm an ongoing trend, while lagging indicators signal the possible occurrence of an event

What is the range in which an oscillator typically oscillates?

• 25 to 75

• 50 to 100

• 0 to 50

• 0 to 100

What does the Relative Strength Index (RSI) oscillate between?

• 50 and 100

• 0 and 100

• 25 and 75

• 0 and 50

When is a security considered oversold according to RSI?

• When RSI is between 0 and 30

• When RSI is between 70 and 100

• When RSI is between 30 and 50

• When RSI is between 50 and 70

What does a value between 70 and 100 indicate in RSI?

• Heavily bought security

• Neutral position

• Undervalued security

• Oversold position

What does a value between 30 and 0 indicate in RSI?

• Oversold position

• Heavily bought security

• Neutral position

• Undervalued security

What does a prolonged period of RSI being in the overbought region indicate?

• Excess negative momentum

• Stable market conditions

• Market manipulation

• Excess positive momentum

What does a prolonged period of RSI being in the oversold region indicate?

• Excess positive momentum

• Excess negative momentum

• Market manipulation

• Stable market conditions

When should a trader look for buying opportunities according to RSI?

• When RSI is fixed in an oversold region for a prolonged period

• When RSI is moving away from the oversold value after a prolonged period

• When RSI is moving away from the overbought value after a prolonged period

• When RSI is fixed in an overbought region for a prolonged period