technical analysis

CFA Level I
#1

is the breadth of market a momentum indicator? stock volume technique?

#2

Should be a momentum indicator. btw, expected a lot more technical analysis questions

#3

can anyone else confirm that pls?

#4

Lucky guess for me. So I got one right.

#5

confirmed - right

#6

I hate when I need to confirm an answer which I answered wrong on the exam. Still, I’ve looked it up in the curriculum and it is a momentum indicator :frowning: Milos

#7

yes i chose a momentum indicator …

#8

momentum indicator

#9

totally guessed and seems like I got it right :slight_smile:

#10

baa168 Wrote: ------------------------------------------------------- > is the breadth of market > > a momentum indicator? > stock volume technique? Are those the only 2 choices? were there others like contrarian etc?

#11

F’in a. i had no clue and chose contrarian

#12

I’m afraid it isn’t a momentum indicator…it is a stock volume technique. Breadth of market is how many stocks up, how many down…volume up compared to volume down, etc…it’s called breadth because you are measuring the horizontal side of the market, versus depth where you look at a particular stock. analysis, etc. Momentum has to do with how a stock or market index is picking up on a trend, or going down on a downtrend etc…it measures the direction of stock movement, using stuff like RSI.

#13

I’m with Dreary on this, but don’t know what the curriculum says…

#14

anyone actually going to check out the answer in the curriculum? I’ve tried to stay away since saturday.

#15

i just checked the cfai text there are two momentum indicators listed 1) Breadth of the market and 2) stocks above their 200 days moving average… so momentum is correct but schweser did not list it as momentum and used a different title “Other indicators”… now its schweser’s crap … for getting ppl confused for this … and I dont know what I picked … *&&* schweser

#16

i guess it was foloow the smart money, is the right answer !!

#17

cfa curriculum says market breadth is a momentum indicator.

#18

I am not sure about momentum from my knowledge of cnbc and a simple websearch… There is a big book on breadth indicators and I dont see momentum anywhere … Volume may be correct if they meant up/down volume… But if CFAI says its momentum is right then they are right … http://stockcharts.stores.yahoo.net/cogutomabrin.html Market breadth indicators, i.e. advance/decline, new high/new low, or up/down volume, allow technical analysts and traders to look beneath the surface of a market to quantify the underlying strength or direction associated with a market move. Increasingly popular in all types of markets, they give traders the ability to accurately forecast a number of possible outcomes and the likelihood of each. http://www.metaquotes.net/techanalysis/indicators/momentum The Momentum Technical Indicator measures the amount that a security’s price has changed over a given time span. You can use the Momentum indicator as a trend-following oscillator. You can also use the Momentum indicator as a leading indicator.

#19

http://www.investopedia.com/university/marketbreadth/

#20

Market breadth is closer to being a price-volume indicator than to being a momentum indicator…CFAI says that market breadth is a momentum indicator …it also classified RSI as a price-volume indicator…so if you said momentum you will get it right. I know too many technical analysts, and I know they would laugh at that.