- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 67. Technical Analysis
- Subject 5. Technical Indicators
CFA Practice Question
Which one is a momentum oscillator?
B. A put/call ratio
C. A stochastic oscillator
A. The CBOE Volatility Index
B. A put/call ratio
C. A stochastic oscillator
Correct Answer: C
A stochastic oscillator doesn't follow price; it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, momentum changes direction before price.
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