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VOLUME II: VOLUME INDICATORS
Answers
1. A. A high reading merely indicates a high level of volume. This could come during a rally or a decline.
2. B. When the price falls and volume rises, as is happening in the chart, this is bearish.
3. C. A peaking in the oscillator indicates a probable exhaustion move in volume, which is often followed by a trend reversal or trading range.
4. A.
5. A.
6. B. The Demand Index, unlike the volume ROC and oscillator, always moves in the same direction as the price.
7. D.
8. C.
9. D. All of the choices are legitimate interpretive techniques, but the strongest characteristic of this indicator is its ability to point up divergences.
10. D. The OBV is not an oscillator and does not experience overbought/oversold ...
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