Day Trading Technical Indicators 3

Question 1

Pivot points in day trading are calculated using the previous day's:

Accepted Answer

High, Low, and Close

Answer

Open, Close, and Volume

Answer

Open, High, and Low

Answer

Close, Volume, and RSI

Question 2

What does a 'death cross' signal on a daily chart?

Accepted Answer

The 50-day SMA crossing below the 200-day SMA, signaling bearish momentum

Answer

A bullish reversal after a prolonged downtrend

Answer

A gap-down opening below the prior day's low

Answer

An RSI reading below 20

Question 3

The Parabolic SAR indicator is primarily used to:

Accepted Answer

Identify potential reversal points and trailing stop levels in trending markets

Answer

Measure volume relative to price

Answer

Calculate the fair value of a stock

Answer

Detect overbought conditions in range-bound markets

Question 4

A 'squeeze' on the TTM Squeeze indicator signals that:

Accepted Answer

Bollinger Bands have contracted inside Keltner Channels, indicating a pending volatility breakout

Answer

Volume has spiked to an unusual level

Answer

The MACD histogram has crossed zero

Answer

The stock has gapped up at the open

Question 5

Which indicator would a day trader most likely use to confirm that a breakout is supported by institutional participation?

Accepted Answer

Volume relative to the 50-period average volume

Answer

Parabolic SAR

Answer

Stochastic Oscillator

Answer

Bollinger Band width

Question 6

What is 'indicator confluence' in day trading?

Accepted Answer

Multiple independent indicators aligning to signal the same trade direction, increasing probability

Answer

Using only one indicator to avoid conflicting signals

Answer

The overlap between RSI and MACD settings

Answer

The requirement to use indicators from different asset classes