Asked by Stone Jamison on May 10, 2024
Verified
The moving average generates sell signals ________.
A) on days 3, 11, and 15
B) on days 7, 15, and 18
C) on days 5, 9, and 13
D) on day 16
Moving Average
A statistical method used in finance to smooth out data points for a stock or other security by averaging the price points over a specific period of time, making it easier to identify trends.
Sell Signals
Indications, based on technical analysis or other factors, suggesting that it might be an opportune time to sell a particular investment.
- Understand the principles of moving averages and their indicators in market trading.
Verified Answer
NE
Nor Effendi OthmanMay 15, 2024
Final Answer :
B
Explanation :
The moving average generates a sell signal when the price falls below the moving average. Looking at the chart, the moving average is a 5-day moving average. The price falls below the moving average on days 7, 15, and 18. Therefore, choice B is the correct answer.
Learning Objectives
- Understand the principles of moving averages and their indicators in market trading.
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