NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
In the MACD indicator, a bullish signal-line crossover is said to occur when:
A bullish signal-line crossover occurs when the MACD line crosses above its signal line. The signal line is a moving average of the MACD itself, so the crossover indicates upward momentum building. A cross below the signal line is read as bearish.
- AThe MACD line crosses above its signal lineCorrect
- BThe MACD line crosses below its signal line
- CThe signal line falls below zero
- DThe 200-day average crosses the 50-day average from above
Explanation
MACD is the difference between a short and long exponential moving average, and the signal line is an EMA of the MACD. When MACD moves above the signal line, momentum is turning upward, which is a bullish signal. The reverse is bearish.
Did you get it right without looking?
One question tells you little. A timed set on Technical Analysis shows your real accuracy, how long you take and where you lose marks.
More Technical Analysis questions
- A stock's 14-day RSI is computed with average gain of 1.5 points and average loss of 0.5 points over the period. Using RSI = 100 - 100/(1+RS…
- According to Dow Theory, a primary uptrend is confirmed when:
- A trader computes the Relative Strength Index using the standard formula RSI = 100 - 100/(1+RS). If the average gain over the look-back peri…
- Using the classic pivot point formula based on the previous day's data, a stock had High Rs 220, Low Rs 200 and Close Rs 210. What is the fi…
- A 14-period RSI is computed with average gain of 1.5 and average loss of 0.5 over the period. What is the RSI value?
- In a Japanese candlestick chart, a candle whose closing price is above its opening price is conventionally drawn as which of the following?