Moving Averages, MACD

Question 1

A __________________ is a technical indicator that smooths out price data to identify trends over time.

Answer 1

moving average

Question 2

Types of Moving Averages:

Answer 2

• Simple Moving Average (SMA)
• Exponential Moving Average (EMA)

Question 3

Calculates the average closing price over a set period (e.g., 50-day)

Answer 3

Simple Moving Average (SMA)

Question 4

Gives more weight to recent prices, making it more responsive to recent movements.

Answer 4

Exponential Moving Average (EMA)

Question 5

Uses of Moving Averages

Answer 5

• Identifying trends (uptrend, downtrend, sideways).
  
  • Acting as support/resistance levels.
  • Generating buy/sell signals (e.g., when a short-term MA crosses a long-term MA).

Question 6

Common Moving Average Strategies:

Answer 6

• Golden Cross
• Death Cross

Question 7

When a short-term MA (e.g., 50-day) crosses above a long-term MA (e.g., 200-day), signaling a bullish trend.

Answer 7

Golden Cross

Question 8

When a short-term MA crosses below a long-term MA, signaling a bearish trend.

Answer 8

Death Cross

Question 9

are to show securities when they are overbought or oversold
allowing a trader to enter at the best possible price.

Answer 9

Oscillating indicators

Question 10

is a technical indicator used
to identify new trends or momentum and show the connection between the price
of two moving averages.

Answer 10

MACD

Question 11

uses the difference between
short-term price and long-term price action trends to anticipate future
movements.

Answer 11

MACD

Question 12

is a result of taking a longer-term EMA and subtracting it
from a shorter term EMA

Answer 12

MACD Line

Question 13

EMA of the MACD line described into 1 component

Answer 13

Signal Line

Question 14

measures the distance between MACD and its signal line. The
difference between the two oscillates around Zero Line

Answer 14

Histogram

Question 15

the number of periods that are used to calculate

Answer 15

Faster MA

Question 16

the number of periods that are used

Answer 16

Slower MA

Question 17

the number of
bars that are used to calculate

Answer 17

Difference between the faster and slower moving average

Question 18

If moving averages move towards each other,

Answer 18

Convergence

Question 19

occurs when the moving averages move
away from each other

Answer 19

Divergence

Question 20

Crossovers

Answer 20

• Signal-line Crossovers
• Center-line Crossover
• Divergence

Question 21

It shows _____________ when the MACD crosses above the signal line

Answer 21

bullish crossover

Question 22

a ________________ if it
turns below the signal line.

Answer 22

bearish crossover

Question 23

When the MACD line moves above the zero line to turn positive, then a ______________________ occurs. This occurs when the 12-day EMA moves above the
26-day EMA.

Answer 23

bullish
center-line crossover

Question 24

If the MACD line moves below the zero line to turn negative, then it is a __________________> This occurs when the 12-day EMA moves below the 26-day EMA.

Answer 24

bearish center-line.

Question 25

________________________ forms when a lower low was recorded by a security and a higher high is created on the MACD.

Answer 25

“Bullish Divergence” or “Positive Divergence”

Question 26

A _______________________________ takes place when the security records a higher high and a lower low on the MACD.

Answer 26

“Bearish Divergence” or “Negative Divergence”

Question 27

is to measure the strength of a trend by comparing the closing price of a security to its price range and smoothing the results with EMA.

Answer 27

Relative Vigor Index

Question 28

is a type of oscillator that uses both price and volume on measuring buy and sell pressure. It generates less buy and sell signals compared to other oscillators.

Answer 28

Money Flow Index

Question 29

is to filter out volatility from conventional moving averages.

Answer 29

Triple Exponential Moving Average – TEMA

Question 30

is to be a momentum indicator. It is an oscillator used to identify oversold and overbought markets.

Answer 30

Triple Exponential Average – TRIX

Question 31

is to measure market momentum. The ______________ calculates the difference of the 34 and 5-period Simple Moving Averages.

Answer 31

Awesome Oscillator