Technical Analysis Quiz 7: Difference between revisions

Revision as of 08:18, 29 March 2008

1 This is

Class

ish divergence.

2 This is

Class

ish divergence.

3 This is

Class

ish divergence.

4 This is

Class

ish divergence.

5 This is

Class

ish divergence.

6 This is

Class

ish divergence.

There are two basic types of indicator --

and

.

indicators are designed to

price data so that a trend can be represented as a

.

, allowing us to detect changes in

or

of price change.

A

is calculated by adding the closing prices for the last n periods and diving by n.

An

is an indicator that is constructed so that it swings back and forth across a

line that is usually

.

means the speed at which

is moving from one period to the next.

A simple

oscillator is calculated by

the price n periods ago from today's price.

is the level of price coinciding with extreme levels of momentum oscillator above the centre line.

is the level of price coinciding with extreme levels of momentum oscillator below the centre line.

A

divergence is a common divergence followed by yet another divergence. That is, there are

price swing highs or lows and the oscillator does not confirm the

and

price highs or lows.

@@ Line 1: / Line 1: @@
-<quiz display=simple shuffle=true>
+<quiz display=simple shuffle=true case=(i)>
 { This is
   [[Image:Class A Bearish Divergence.svg]]
@@ Line 29: / Line 29: @@
 |type="{}"}
 Class { A (i) _1 } { bull (i) _8 }ish divergence.
+{
+|type="{}"}
+There are two basic types of indicator -- { trend following } and { momentum oscillators }.
+{
+|type="{}"}
+{ Trend following } indicators are designed to { smooth } price data so that a trend can be represented as a { line _8 }.
+{
+|type="{}"}
+{ Momentum oscillators measure { momentum }, allowing us to detect changes in { speed } or { direction } of price change.
+{
+|type="{}"}
+A { simple } { moving } { average } is calculated by adding the closing prices for the last n periods and diving by n.
+{
+|type="{}"}
+An { oscillator } is an indicator that is constructed so that it swings back and forth across a { reference } line that is usually { zero }.
+{
+|type="{}"}
+{ Momentum } means the speed at which { price } is moving from one period to the next.
+{
+|type="{}"}
+A simple { momentum } oscillator is calculated by { subtracting } the price n periods ago from today's price.
+{
+|type="{}"}
+{ Overbought } is the level of price coinciding with extreme levels of momentum oscillator above the centre line.
+{
+|type="{}"}
+{ Oversold } is the level of price coinciding with extreme levels of momentum oscillator below the centre line.
+{
+|type="{}"}
+A { triple } divergence is a common divergence followed by yet another divergence.  That is, there are { three } price swing highs or lows and the oscillator does not confirm the { second } and { third } price highs  or lows.
 </quiz>