What this lesson covers
Quiz: Technical Indicators
Learn algorithmic trading by doing. Create SMA and RSI indicators with Aurora, define trading conditions, build a first buy strategy, run portfolio backtests, and learn how paper deployment works.
Explain how indicators, conditions, strategies, and portfolio backtests fit together
Learning outcome for this course.
Create a 10-day SMA and an RSI indicator through Aurora chat
Learning outcome for this course.
Define SMA-to-price and RSI threshold conditions for SPY
Learning outcome for this course.
Create a paper portfolio and a first AMZN buy strategy
Learning outcome for this course.
Run a buy-and-hold backtest and compare a strategy with a SPY benchmark
Learning outcome for this course.
Describe paper deployment and the checks to make before considering live trading
Learning outcome for this course.
Practice questions
Answer inside the lesson player. Correct-answer keys and explanations are not exposed in this public preview.
What key assumption do technical analysis indicators operate under?
The stock market is completely random · What happened in the past is likely to happen in the future · Company earnings always predict stock price · All stocks move in the same direction
Stock market returns are non-stationary. What does this mean?
Stocks never move · You can always rely on past performance · What happened before may not happen again - returns change over time · Technical indicators are always accurate
What is 'mean reversion' in trading?
Stocks always go up over time · If a stock is far from its average price, it's likely to move back toward that average · The market average is always correct · You should always sell at the mean price
Which indicators are examples of mean reversion indicators?
RSI and MACD · Simple Moving Average, Exponential Moving Average, and Bollinger Bands · PE Ratio and Free Cash Flow · Satellite imagery and sentiment data
What do momentum indicators assume?
Stocks always return to their average · If a stock is moving in a certain direction, it will likely continue in that direction · All stocks move together · Price doesn't matter
RSI and MACD are examples of what type of indicator?
Mean reversion indicators · Fundamental indicators · Momentum indicators · Economic indicators
According to Investopedia, what are the two basic categories of technical indicators?
Leading and Lagging indicators · Overlays and Oscillators · Price and Volume indicators · Short-term and Long-term indicators
Which of the following is an example of an Overlay indicator?
RSI (Relative Strength Index) · MACD (Moving Average Convergence Divergence) · Bollinger Bands · Stochastic Oscillator