Technical Analysis Quiz 10

MACD

1

The MACD is really only useful for trading .

2

Percentage bands are useful in trading markets, because bands represent and levels.

3 Consider the following statements on the moving average convergence divergence (MACD):

true	false
		MACD signals are generated by the crossing of the two lines.
		The MACD is primarily used to trade trends.
		When using the MACD, you are always in the market.
		The MACD tends to give late signals.

4 Consider the following two (2) statements on Bollinger Bands:

true	false
		If the price hugs either of the bands in a trending move, the move is likely to continue while there is no divergence on a momentum oscillator.
		If the price moves outside the bands and does not immediately reverse back into the bands, this is an indication of strength and suggests continuation.