Q2B QUIZ
1. Define an "oscillator".
2. What does "overbought" mean? What does "oversold" mean?
3. What does "RSI" stand for? What does it measure?
4. Say you're swing trading a stock and have been holding the
position for five days. The stock price makes a new high but
its RSI, which is in the overbought position, hooks down. What
action will you consider taking?
5. When you're viewing the Stochastics Oscillator on a
chart,readings ______ ___ are considered overbought, and
readings ______ ___ are considered oversold.
6. You're using Stochastics as a decision support tool for entry
into a long position. At the moment, both lines are below 20
and are hooked to the upside. The faster %K line just crossed
above the slower %D line. What does that tell you?
7. Define the MACD.
8. How does the MACD-H (histogram) give BUY & SELL signals?
Tune in tomorrow @ Q2B for the answers