11
MOVING AVERAGES
Questions
Subjects to Be Covered
Types of moving averages
Centering averages
Determining the significance of a crossover
Establishing the validity of a crossover
The importance of time spans
Advancing averages
Comparing more than one average
1. Fill in the blanks: A weighted moving average f_____ loads the data. A s_____ moving average treats all the data equally. And an e_____ moving average front-loads the data.
2. Which of the following statements is true?
A. A centered moving average is more accurate in reflecting trend changes, but less timely in triggering signals.
B. A noncentered moving average triggers buy and sell signals when it experiences a price crossover.
C. The shorter the time span, the greater the sensitivity ...
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