The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

the hAnDbook of technIcAl AnAlySIS

8.8 Chapter Summary

In this chapter, we looked at various classifications of indicators and oscillators

and how they apply to price and market action. It is important to note that in-

dicators and oscillators are especially effective in predicting reversals when they

coincide with price barriers like support/resistance, trend lines, channel boundar-

ies, and Floor Trader’s pivot levels.

Chapter 8 Review Questions

1. What is the difference between overlay and window oscillators?


2. Describe the four types of overlay indicators with one example of each type.


3. What are the advantages and disadvantages of an unbounded oscillator?


4. Explain scale invariance.


5. What is the difference between static and dynamic overlay indicators?


6. What are the eight ways to analyze an oscillator?


7. Explain how to set up the hourly and 4‐hour MACD on a 15‐min chart.


8. What are the differences between the ROC and MOM momentum oscillators?

referenCes

Archelis, Steven B. 2001. Technical Analysis from A to Z. New York: McGraw‐Hill.

Colby, Robert W. 2003. The Encyclopedia of Technical Market Indicators. New York:

McGraw‐Hill.