Which of the following technical indicator compares the strength on buy and sell in order to find out whether a stock is overbought or oversold?Question 19Select one:a.On-balance volumeb.Relative strength indexc.Moving averaged.Moving average convergence and divergence
Question
Which of the following technical indicator compares the strength on buy and sell in order to find out whether a stock is overbought or oversold?Question 19Select one:a.On-balance volumeb.Relative strength indexc.Moving averaged.Moving average convergence and divergence
Solution
The technical indicator that compares the strength of buy and sell in order to find out whether a stock is overbought or oversold is the Relative Strength Index (RSI). So, the correct answer is b. Relative Strength Index.
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