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
Pivot points in day trading are calculated using the previous day's:
Answer: High, Low, and Close
Standard pivot points are calculated as the average of the prior day's High, Low, and Close prices.
What does a 'death cross' signal on a daily chart?
Answer: The 50-day SMA crossing below the 200-day SMA, signaling bearish momentum
A death cross occurs when the 50-day SMA crosses below the 200-day SMA, widely viewed as a long-term bearish signal.
The Parabolic SAR indicator is primarily used to:
Answer: Identify potential reversal points and trailing stop levels in trending markets
Parabolic SAR plots dots above or below price to signal trend direction and provide dynamic trailing stop reference points.
A 'squeeze' on the TTM Squeeze indicator signals that:
Answer: Bollinger Bands have contracted inside Keltner Channels, indicating a pending volatility breakout
A TTM Squeeze fires when Bollinger Bands compress inside Keltner Channels, showing low volatility that typically precedes a large directional move.
Which indicator would a day trader most likely use to confirm that a breakout is supported by institutional participation?
Answer: Volume relative to the 50-period average volume
Comparing current volume to the average volume confirms whether large institutional players are behind a price breakout.
What is 'indicator confluence' in day trading?
Answer: Multiple independent indicators aligning to signal the same trade direction, increasing probability
Confluence occurs when several unrelated indicators simultaneously point to the same entry or exit, raising the probability of a successful trade.