CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Based on traditional measures, a security is overbought if ______
A. its stochastic oscillator is 85.
B. its RSI is 25.
C. its momentum oscillator is 90.
Explanation: The stochastic oscillator measures the level of the close relative to the high-low range over a given period of time. Traditional settings use 80 as the overbought threshold.

User Contributed Comments 2

User Comment
Mariana80 I don't understand why the momentum oscillator option isn't correct. I thought for the momentum oscillator anything +50 means it's overbought.
Marinov Mariana80: The momentum oscillator varies around 0 or around 100 depending on the formula used. +50 is not a result you stumble upon often with the momentum oscillator.
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