Quiz 5

Q1. What is the main disadvantage of Leading Indicators?

A. Do not show the trend

B. Do not forecast future prices of the currency

C. Signals much before the market is expected to turn

D. All of these

Q2. Which one of the most reliable in Leading Indicators and the Lagging Indicators?

A. Leading Indicators are more reliable

B. Lagging Indicators are more reliable

C. Both the Indicators are equally reliable

D. Forex traders should not rely on any of these Indicators

Q3. What is MACD?

A. Trend

B. Candlestick

C. Indicator

D. Moving Average

Q4. Which is the least common MACD signal among the three bullish signals?

A. Positive Divergence

B. Bullish Moving Average Crossover

C. Bullish Centre line Crossover

D. Negative Divergence

Q5. Which is the least common MACD signal among the three bearish signals?

A. Positive Divergence

B. Bearish Moving Average Crossover

C. Bearish Centre line Crossover

D. Negative Divergence

Q6. Which are the three bands in the Bollinger Band?

A. Upper Band, Middle Band and Lower Band

B. Top Band, Middle Band and Bottom Band

C. Top Band, Centre Band and Bottom Band

D. Outer Band, Core Band and Inner Band

Q7. Who introduced the concept of Parabolic SAR?

A. Dr Alan H. Andrews

B. J. Welles Widler

C. Leonardo de Pisa

D. John Andrews

Q8. What type of the signals does the Parabolic SAR give?

A. Entries and Exits are strong

B. Entries are strong but Exits are weak

C. Entries are weak but Exits are strong

D. Both Entries and Exits are weak and the Forex traders should not trust the signals given by this Indicator

Q9. When does the RSI Indicator show the overbought condition in the market?

A. Reading of the scale is more than 70

B. Reading of the scale is more than 75

C. Reading of the scale is more than 80

D. Reading of the scale is more than 85

Q10. When does the Stochastic Indicator show the oversold condition in the market?

A. Reading of the scale is more than 30

B. Reading of the scale is more than 25

C. Reading of the scale is less than 25

D. Reading of the scale is less than 20

Answer of Question 1: C

Answer of Question 2: B

Answer of Question 3: C

Answer of Question 4: A

Answer of Question 5: D

Answer of Question 6: A

Answer of Question 7: B

Answer of Question 8: C

Answer of Question 9: A

Answer of Question 10: D