Technical Analysis Quiz 8: Difference between revisions
m (New page: == Trend Following Indicators == <quiz display=simple shuffle=true case=(i)> { |type="{}"} Trading signals are given when { price } crosses the { moving average } line. { |type="{}"}...) |
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{ Three } moving averages are used to produce a system with { three } modes -- long, short, and { of | { Three } moving averages are used to produce a system with { three } modes -- long, short, and { out of the market }. | ||
{ | { | ||
|type="{}"} | |type="{}"} | ||
With { three } moving averages, all { three } lines must be in { long } or short configurations to be in the market. When they are not, we do not trade. | With { three } moving averages, all { three } lines must be in { long } or short configurations to be in the market. When they are not, we do not trade. | ||
{Consider the following chart:<br /> | |||
[[Image:three moving averages.png]]<br /> | |||
Identify the action on each date: | |||
|type="[]"} | |||
| open | close | long | short | |||
-++- January 6 | |||
+--+ January 15 | |||
-+-+ March 1 | |||
+-+- March 18 | |||
{ | { | ||
Line 80: | Line 90: | ||
{ | { | ||
|type="{}"} | |type="{}"} | ||
As a trend { filter }, use trend following indicators when | As a trend { filter }, use trend following indicators when ADX is above { 25 }. | ||
{Identify the colour of each line<br /> | |||
[[Image:directional movement.png]] | |||
|type="()"} | |||
| black | red | green | |||
--+ +DI | |||
-+- -DI | |||
+-- ADX | |||
</quiz> | </quiz> | ||
Next quiz: [[Technical Analysis Quiz 9]] | |||
[[Category:Technical Analysis|Quiz 08]] |