TECHNICAL INDICATOR JARGON

Question 1

SMA

Answer 1

Simple Moving Average: arithmetic mean of prices over a period.

Question 2

EMA

Answer 2

Exponential Moving Average: gives more weight to recent prices.

Question 3

RSI

Answer 3

Relative Strength Index: momentum oscillator (0–100) indicating overbought/oversold levels.

Question 4

MACD

Answer 4

Moving Average Convergence Divergence: difference between two EMAs to spot trend shifts.

Question 5

BB

Answer 5

Bollinger Bands: bands set ±2 standard deviations from an SMA to gauge volatility.

Question 6

ATR

Answer 6

Average True Range: measures volatility by averaging true price ranges.

Question 7

ADX

Answer 7

Average Directional Index: quantifies trend strength without regard to direction.

Question 8

DMI

Answer 8

Directional Movement Index: components (+DI/–DI) that feed into ADX for trend direction.

Question 9

OBV

Answer 9

On-Balance Volume: running total of volume added/subtracted based on price movement.

Question 10

CCI

Answer 10

Commodity Channel Index: measures price deviation from its statistical mean.

Question 11

ROC

Answer 11

Rate of Change: percentage price change over “n” periods.

Question 12

MFI

Answer 12

Money Flow Index: volume-weighted RSI incorporating both price and volume.

Question 13

CMF

Answer 13

Chaikin Money Flow: volume-weighted measure of accumulation vs. distribution.

Question 14

PSAR

Answer 14

Parabolic SAR: trend-following stop-and-reverse indicator.

Question 15

Stoch RSI

Answer 15

Stochastic RSI: stochastic oscillator applied to RSI values for extra sensitivity.