Technical Analysis Quiz 8

Trend Following Indicators

1

Trading signals are given when crosses the line.

2

Fast moving averages are useful for term trading, but yield many .

3

Slow moving averages give fewer signals, but the signals are ' '.

4

are useful in sorting out signals.

5

Whether the moving average is up or down defines the direction of the and is an excellent .

6

In the moving average approach, a moving average is used to replace price -- signals are more clear cut.

7

moving averages are used to produce a system with modes -- long, short, and .

8

With moving averages, all lines must be in or short configurations to be in the market. When they are not, we do not trade.

9

Consider the following chart:

Identify the action on each date:

open	close	long	short
				January 6
				January 15
				March 1
				March 18

10

is a stop-and-reverse system.

11

It generates stop levels that as a develops.

12

Use it only in markets.

13

is the larger part of 's range above or below 's range.

14

range is the difference between today's high and low, or yesterday's close and today's high or low if today's range is outside yesterday's range.

15

is average directional movement as a percentage of true range.

16

directional movement is an average of the net directionality of movement, ie. how directional the market is on balance.

17

Go when +DI crosses from below to to above -DI and go when -DI crosses from below to above +DI. The best signals are when turns up from below both lines.

18

Take profits when turns down from above both lines.

19

Close when +DI crosses from above to below -DI and close when -DI crosses from above to below +DI.

20

Directional movement can be used to determine if a market is .

21

As a trend , use trend following indicators when ADX is above .

22

Identify the colour of each line

black	red	green
			+DI
			-DI
			ADX

Next quiz: Technical Analysis Quiz 9