Relative Strength Index (RSI)

B

The correct answer to the question is option B: Relative strength index.

The Relative Strength Index (RSI) is a technical analysis indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is a momentum oscillator that measures the speed and change of price movements, and its values range from 0 to 100.

When the RSI value is above 70, it is generally considered to indicate overbought conditions, meaning the asset is potentially overvalued and could experience a price decline. Conversely, when the RSI value is below 30, it is generally considered to indicate oversold conditions, meaning the asset is potentially undervalued and could experience a price increase.

The Moving Average Convergence/Divergence (MACD) is another technical analysis indicator that measures the relationship between two moving averages of an asset's price. It is used to identify trend direction, momentum, and potential buy/sell signals.

The On Balance Volume (OBV) indicator is used to measure buying and selling pressure by adding volume on up days and subtracting volume on down days. It is used to confirm price trends and predict potential trend reversals.

The Bollinger Bands indicator consists of a moving average and two standard deviations bands plotted above and below the moving average. It is used to identify potential overbought and oversold conditions of an asset by measuring volatility and the distance between the bands.

In summary, while all the options listed above are technical analysis indicators used to identify potential overbought and oversold conditions of an asset, the Relative Strength Index specifically compares the magnitude of recent gains to recent losses to determine such conditions.