Test “Bollinger Bands”

Test: Bollinger Bands

1 / 6

What are Bollinger Bands used for?

a) For determining maximums and minimums

b) For measuring market volatility

c) For determining the momentum of price movement

d) For accelerating trend breakthrough

2 / 6

How many main lines do Bollinger Bands consist of?

a) 2

b) 3

c) 4

d) 5

3 / 6

What does the middle band represent?

a) The moving average of the price

b) A band with a high price

c) A band with a low price

d) An intermediate level

4 / 6

When is an asset considered overbought?

a) When the price remains the same

b) When the price doesn’t reach any band

c) When the price reaches the upper band

d) When the price reaches the lower band

5 / 6

When is an asset considered oversold?

a) When the price remains the same

b) When the price doesn’t reach any band

c) When the price reaches the upper band

d) When the price reaches the lower band

6 / 6

Which distance between the bands represents high volatility?

a) None

b) Large

c) Small

d) Both A and C

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