Brandon Traudt Teresa Fiorello Joseph Cepeda Per 2 Momentum indicator; Relative Strength Index (RSI); Moving Average Convergence Divergence (MAC-D) Brandon Traudt Teresa Fiorello Joseph Cepeda Per 2

Moving Average Convergence/Divergence (MACD)- is the difference between two moving averages. One MA would be over a short period of time (11 days) and the other MA would be over a longer period (26 days). Very simple and flexible.

Momentum indicator- used to identify overbought/oversold conditions in a stock index. Momentum is the impetus gained by a moving object. The black line is the average line

Relative Strength Index (RSI)- used to identify overbought/oversold situations in a stock index. Also to identify the buying opportunities and selling opportunities. Overbought line is the ceiling of the price, oversold line is the floor of the price. RSI compares magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.

Questions- A trader using RSI should be aware that large surges and drops in the price of an asset will/will not affect the RSI

Numbers represent the crossing over the line #1 #2 #3 #4

http://en.wikipedia.org/wiki/MACD http://www.onlinetradingconcepts.com/TechnicalAnalysis/RelativeStrengthIndex.html http://www.onlinetradingconcepts.com/TechnicalAnalysis/Momentum.htm