1. A momentum index measures

a. investor sentiment

b. investor psychology

c. the rate of change of prices

d. absolute volume level

2. Moving average crossovers can be used to indicate

a. buy and sell signals

b. positive relative strength

c. negative volume

d. trend divergence

3. Which indicator has a fast and slow version where the slow version is a doubly smoothed moving average?

a. moving average convergence divergence

b. stochastic oscillator

c. simple moving average

d. McClellan Summation Index

e. none of the above

4. Many oscillators have similarities between them, why?

a. they are all derivative of price

b. they all incorporate volume

c. they all use moving averages

d. they are all bounded

5. An exponentially smoothed moving average

a. excludes older price points in the calculation

b. gives more weight to more recent observations

c. cannot be plotted on a bar chart

d. none of the above

e. all of the above

6. Most oscillators are constructed

a. so that the mid-point goes through zero

b. on a semi-logscale to highlight momentum

c. so that all points are positive in value

d. without an upper boundary

e. none of the above

7. A ______ occurs at a series of price lows when the price reaches a new low unconfirmed by a new low in the oscillator.

a. positive divergence

b. negative divergence

c. breadth thrust

d. sell signal

8. Moving averages tend to change direction well after a peak or trough in price and therefore are considered late in changing direction. Which of the following is generally is considered the most effective way to offset this tendency to lag?

a. using a weighted moving average

b. using an unweighted moving average

c. using moving average crossovers

d. none of the above

9. An exponentially smoothed moving average

a. excludes older price points in the calculation

b. gives more weight to more recent observations

c. cannot be plotted on a bar chart

d. none of the above

e. all of the above

10. A momentum index measures

a. investor sentiment

b. investor psychology

c. the rate of change of prices

d. absolute volume level