What is the primary function of technical indicators in stock market analysis?

To predict future economic events To analyze the price movement of a security To assess a company's financial health To determine the intrinsic value of a stock

What are the two main types of technical indicators?

Fundamental and technical Leading and lagging Bullish and bearish Quantitative and qualitative

What is the characteristic of a leading indicator?

It confirms a trend after it has occurred It signals a potential trend reversal in advance It analyzes a company's financial statements It measures the overall market sentiment

What is the typical range within which an oscillator, a type of leading indicator, fluctuates?

-100 to 100 0 to 1 0 to 100 1 to 10

What does the Relative Strength Index (RSI) measure?

The relative strength of two securities The internal strength of a security The overall market volatility The price-to-earnings ratio of a stock

According to the traditional interpretation of RSI, what does a value between 70 and 100 indicate?

The security is oversold The security is overbought The security is undervalued The security is in a neutral zone

What does it signify if the RSI remains in the overbought region for an extended period?

The security is likely to experience a downward correction The security has strong positive momentum The security is becoming less volatile The security is entering a bear market

What is the recommended action if the RSI moves above 30 after being in the oversold region for a long time?

Consider selling the security Consider buying the security Wait for further confirmation Short sell the security