#1
What is a trend line in technical analysis?
A line connecting two or more price points to define the direction of the trend
ExplanationDefines trend direction by connecting price points.
#2
What does the RSI (Relative Strength Index) measure?
The relative strength of a stock's price movement over a specified period
ExplanationMeasures stock's price strength over time.
#3
What is the concept of 'support' in technical analysis?
A price level at which a stock tends to find buying interest
ExplanationPrice level with buying interest.
#4
What is the purpose of a 'stop-loss order' in technical analysis?
To limit potential losses by automatically selling a stock if it reaches a certain price
ExplanationLimits losses by automatic selling.
#5
What does 'volume' represent in technical analysis?
The total number of shares traded for a stock within a specific time period
ExplanationTotal shares traded within a period.
#6
What is a 'golden cross' in technical analysis?
When a short-term moving average crosses above a long-term moving average
ExplanationShort-term moving average surpasses long-term.
#7
What is the purpose of Fibonacci retracement levels in technical analysis?
To identify potential reversal points in a stock's price movement
ExplanationIdentifies possible price reversal points.
#8
What is the MACD (Moving Average Convergence Divergence) indicator used for in technical analysis?
To visualize the relationship between two moving averages of a stock
ExplanationVisualizes moving average relationships.
#9
What does the term 'breakout' refer to in technical analysis?
A significant move above or below a predefined price level
ExplanationSignificant price movement above or below.
#10
What does the term 'divergence' mean in technical analysis?
When a stock's price and an indicator move in opposite directions
ExplanationPrice and indicator move opposite.
#11
What is the Elliot Wave Theory in technical analysis?
A theory based on the assumption that markets move in repetitive patterns
ExplanationMarkets move in repetitive patterns.