Intermediate Indicators Section Review Questions

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Section 9 Intermediate Indicators Section Review Questions Question 1 Which of the following statements about Average Directional Index (ADX) is NOT true? a) The ADX measures trend strength without regard to trend direction b) +DI and –DI are used to define directional movement when interpreting ADX c) The DI crossover system can be used to identify potential buy and sell signals d) A strong trending market is present when the ADX is above 50 Question 2 Which of the following are commonly used potential buy and sell signals when interpreting Moving Average Convergence Divergence (MACD)? a) Signal Line Crossover b) Centerline Crossover c) Divergences d) All of the above Question 3 The Money Flow Index (MFI) is also known as: a) Volume-weighted ADX b) Volume-weighted RSI c) Price-weighted Stochastics d) Price-weighted MACD Question 4 The default look-back period for calculating the Relative Strength Index (RSI) is? a) 12 b) 20 c) 14 d) 10 Question 5 When looking at the following indicators, which one is in overbought territory based on the traditional settings for each indicator? a) Slow Stochastics b) Money Flow Index c) Relative Strength Index d) All of the above Question 6 Which of the following statements is NOT true concerning On Balance Volume (OBV)? a) OBV is based on the theory that volume precedes price b) OBV was developed by Joe Granville c) Divergences should NOT be used to anticipate trend reversals when analyzing OBV d) OBV can be used to confirm a price trend Question 7 Which of the following are considered Market Breadth Indicators? a) Advance-Decline Line b) McClellan Oscillator c) Arms Index d) All of the above Section 9 Intermediate Indicators Section Review Answers 1) d 2) d 3) b 4) c 5) a 6) c 7) d .

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