Study Guide for Come Into My Trading Room - Forex Factory

38 QUESTIONS
Question 38—Stochastic
Which of the following statements about Stochastic is incorrect?
1. It helps identify overbought and oversold conditions.
2. Look to sell when Stochastic is above its upper reference line.
3. Its divergences give the strongest signals.
4. It helps identify trends.
5. Avoid shorting when Stochastic is below its lower reference line.
Question 39—Stochastic
A B C D E F G H I J K L
Figure 4.6
Match the following Stochastic signals with the letters in Figure 4.6:
1. Buy signal
2. Sell signal
3. Bullish divergence
4. Bearish divergence
And for extra credit:
At the right edge of the chart, bullish, bearish, or neutral? Please explain.