- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 56. Technical Analysis
- Subject 5. Technical Indicators
CFA Practice Question
Which technical indictor brings together momentum and trend?
A. A relative strength index
B. A stochastic oscillator
C. A MACD
Explanation: By comparing EMAs of different periods, the MACD line illustrates changes in the trend of a security. By comparing that difference to an average, an analyst can chart subtle shifts in the stock's trend. Therefore, MACD brings together momentum and trend in one indicator.
User Contributed Comments 2
User | Comment |
---|---|
JoshCA | Love those technical indictors! |
janis36 | yeah, because they totally work and you can make tons of money by using them! |