Investors Who Use the MACD Indicator as a Signal for Trading

question 76

Multiple Choice

Investors who use the MACD indicator as a signal for trading are most apt to buy a security when the MACD:

• A)equals zero.
• B)is equal to 1.0.
• C)rises above the signal line.
• D)parallels the signal line.
• E)falls below the signal line.

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Definitions:

Order

An arrangement or sequence of things or events, or the command, direction, or instruction given by an authority.

Stability

The condition of being resistant to change and capable of maintaining a balanced or constant state despite external pressures.

Equilibrium

A state of balance or stability within a system, where competing forces or influences are equal.

Manifest Functions

The recognized and intended consequences of any social pattern, which are explicitly stated and understood by the participants in a social system.