If an investor buys a stock when its price has increased 15 percent from its previous low,the investor is employing:
A)a contrarian indicator.
B)a filter rule.
C)a sentiment indicator.
D)relative strength analysis.

Question

Quizplus · Accepted Answer

Buying a stock when its price has increased 15 percent from its previous low is an example of using a filter rule. This means that the investor has established a specific criteria or filter for buying a stock, in this case based on its recent price movements. Contrarian indicators, sentiment indicators, and relative strength analysis are all different types of technical analysis that may be used by investors to identify potential trading opportunities, but they are not directly relevant to the scenario described here.

If an Investor Buys a Stock When Its Price Has