Trading Jobs Technical Analysis for Traders

Question 1

What does a 'golden cross' signal in technical analysis?

Accepted Answer

A short-term moving average crosses above a long-term moving average

Answer

A long-term moving average crosses above a short-term moving average

Answer

Price breaks above a resistance level on high volume

Answer

The RSI crosses above the 70 overbought threshold

Question 2

What does RSI stand for in technical analysis?

Accepted Answer

Relative Strength Index

Answer

Rate of Strength Index

Answer

Return on Securities Indicator

Answer

Relative Support Indicator

Question 3

In technical analysis, what does a 'head and shoulders' pattern typically signal?

Accepted Answer

A bearish reversal from an uptrend

Answer

A continuation of the current uptrend

Answer

A bullish reversal from a downtrend

Answer

A period of low volatility consolidation

Question 4

What is a 'doji' candlestick pattern characterized by?

Accepted Answer

Open and close prices that are nearly equal, forming a small or no body

Answer

A long body with no wicks

Answer

A large green body indicating strong buying pressure

Answer

A gap between the previous close and the current open

Question 5

In technical analysis, a support level is best described as a price point where:

Accepted Answer

Buying interest is strong enough to prevent the price from falling further

Answer

Selling pressure consistently overwhelms buying pressure

Answer

The price consolidates before continuing higher

Answer

Trading volume is typically at its lowest

Question 6

What does MACD stand for?

Accepted Answer

Moving Average Convergence Divergence

Answer

Market Average Chart Direction

Answer

Momentum and Cycle Divergence

Answer

Mean Average Cross Detection

Question 7

Which of the following best describes a 'resistance' level in technical analysis?

Accepted Answer

A price level where selling pressure has repeatedly prevented further price increases

Answer

A price level where buying pressure historically exceeds selling pressure

Answer

The highest price a stock has ever traded at

Answer

A moving average line used to predict future price direction