TH » Test: Bollinger Bands

Test: Bollinger Bands

Question 01: What are Bollinger Bands used for?

a) For determining maximums and minimums

b) For measuring market volatility

c) For determining the momentum of price movement

d) For accelerating trend breakthrough

Question 02: How many main lines do Bollinger Bands consist of?

a) 2

b) 3

c) 4

d) 5

Question 03: What does the middle band represent?

a) The moving average of the price

b) A band with a high price

c) A band with a low price

d) An intermediate level

Question 04: When is an asset considered overbought?

a) When the price remains the same

b) When the price doesn't reach any band

c) When the price reaches the upper band

d) When the price reaches the lower band

Question 05: When is an asset considered oversold?

a) When the price remains the same

b) When the price doesn't reach any band

c) When the price reaches the upper band

d) When the price reaches the lower band

Question 06: Which distance between the bands represents high volatility?

a) None

b) Large

c) Small

d) Both A and C

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