Technical Indicators Flashcards
6 cards from real Day Trading practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Technical Indicators flashcards as text
VWAP stands for Volume Weighted Average Price. In day trading, it is most commonly used as:
Answer: An intraday benchmark for institutional order flow and trade quality
VWAP is an intraday indicator used by institutions as a benchmark; price above VWAP is considered bullish and below is bearish.
The Stochastic Oscillator compares a security's closing price to its price range over a given period. A reading above 80 generally indicates:
Answer: The asset is in overbought territory
A Stochastic reading above 80 signals overbought conditions, suggesting the price may be due for a pullback.
What is the primary difference between a Simple Moving Average (SMA) and an Exponential Moving Average (EMA)?
Answer: EMA gives more weight to recent prices, making it more responsive to new data
The EMA applies a multiplier that gives more weight to recent prices, causing it to react faster to price changes than the SMA.
In technical analysis, what does 'Average True Range' (ATR) measure?
Answer: Market volatility by calculating average price range including gaps
ATR measures market volatility by averaging the true range (including overnight gaps) over a specified number of periods.
A day trader uses the 9 EMA and 20 EMA. A bullish signal is triggered when:
Answer: The 9 EMA crosses above the 20 EMA
The shorter 9 EMA crossing above the longer 20 EMA signals that short-term momentum has turned bullish.
The On-Balance Volume (OBV) indicator is used to:
Answer: Measure cumulative buying and selling pressure using volume
OBV adds volume on up days and subtracts it on down days to show whether volume is flowing into or out of a security.