Reading 12: Technical Analysis-LOS e 习题精选 2011, following, interpret, technical

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Session 3: Quantitative Methods: Application
Reading 12: Technical Analysis

LOS e: Discuss common technical analysis indicators: price-based, momentum oscillators, sentiment, and flow of funds.

 

 

Which of the following would a technical analyst most likely interpret as a "buy" signal?

A) 10-day moving average crosses above a 60-day moving average.

B) 20-day moving average crosses below a 100-day moving average.

C) 30-day moving average crosses above a 5-day moving average.

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When using moving averages to generate trading signals, a "golden cross" of a shorter-term average above a longer-term average is a buy signal, while a "dead cross" under the longer-term average is a sell signal.

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Which of the following would a technical analyst most likely interpret as a "sell" signal?

A) Signal line crosses below the MACD line.

B) Rate of change oscillator begins decreasing.

C) %K line crosses below the %D line.

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The %K and %D lines refer to stochastic oscillators. The %K line is calculated based on the highest and lowest prices reached in a selected number of days, and the %D line is a moving average of the %K line. Used as trading signals, crossovers of the %K line above the %D line are buy signals and crossovers below the %D line are sell signals.

With a moving average convergence/divergence oscillator, a sell signal is indicated when the MACD line crosses below the signal line, which is a moving average of the MACD line. If a rate of change oscillator is used to generate signals, these would typically be indicated when the oscillator crosses above or below the level around which it fluctuates (either 0 or 100).

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Bollinger bands are drawn based on the:

A) difference between two smoothed moving averages.

B) high and low prices in a recent period.

C) standard deviation of recent price changes.

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To use Bollinger bands, an analyst will calculate the standard deviation of prices over some number of trading days, and typically will draw the bands two standard deviations above and below a moving average for the same number of days.

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A value of 0.8 in the short-term Trading Index (TRIN) most likely indicates that:

A) the market is overbought.

B) more investors expect price decreases than increases in the short term.

C) trading volume is heavier in advancing issues than in declining issues.

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The TRIN or Arms index is a flow of funds indicator. Values less than one indicate more trading volume in advancing stocks than in declining stocks, while values greater than one mean more volume is in declining stocks than in advancing stocks.

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Closing prices for a commodity were 21.4 on Monday, 22.2 on Tuesday, 21.8 on Wednesday, 22.4 on Thursday, and 23.2 on Friday. The five-day standard deviation is 0.7 and the 30-day standard deviation is 1.0. On Friday, five-day Bollinger bands using two standard deviations are closest to:

A) 23.6 and 20.8.

B) 24.6 and 21.8.

C) 24.2 and 20.2.

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Bollinger bands are drawn a chosen number of standard deviations above and below a moving average, where the moving average and the standard deviation are calculated using the same number of periods. The 5-day moving average is (21.4 + 22.2 + 21.8 + 22.4 + 23.2) / 5 = 22.2. Using two 5-day standard deviations, the upper band on Friday is 22.2 + 2(0.7) = 23.6 and the lower band is 22.2 ? 2(0.7) = 20.8.