CCE Market Analysis and Strategies 2

Question 1

What does the Relative Strength Index (RSI) measure in cryptocurrency trading?

Accepted Answer

Speed and magnitude of price movements to identify overbought/oversold conditions

Answer

RSI is a momentum oscillator that measures the speed and change of price movements, typically signaling overbought conditions above 70 and oversold below 30.

Question 2

In crypto market analysis, what is a 'death cross'?

Accepted Answer

A pattern where the 50-day MA crosses below the 200-day MA

Answer

A death cross occurs when a short-term moving average (typically 50-day) crosses below a long-term moving average (typically 200-day), signaling bearish momentum.

Question 3

Which market cycle phase typically follows a period of peak euphoria in cryptocurrency markets?

Accepted Answer

Distribution

Answer

In the Wyckoff market cycle, the distribution phase follows peak euphoria as smart money sells holdings to retail investors before a markdown phase begins.

Question 4

What is the primary purpose of using Bollinger Bands in crypto technical analysis?

Accepted Answer

To measure volatility and identify potential breakout or reversal points

Answer

Bollinger Bands consist of a moving average with upper and lower bands set at standard deviations, helping traders identify volatility expansions and price extremes.

Question 5

A crypto trader notices a 'hammer' candlestick pattern after a prolonged downtrend. This signals:

Accepted Answer

A potential bullish reversal with buyers stepping in at lower prices

Answer

A hammer candlestick has a small body near the top and a long lower wick, indicating that sellers pushed prices down but buyers recovered most losses, suggesting a bullish reversal.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Market Analysis and Strategies 2