11
MOVING AVERAGES
Answers
1. front, simple, exponential
2. D.
3. B.
4. E.
5. C.
6. C. All other combinations are either too close or spaced too widely to be of any use.
7. B. Generally speaking, advancing a moving average results in fewer whipsaws, but some signals are less timely. By and large, if the time span and the number of periods to be advanced are selected carefully, this is a good approach.
8. A. When a trendline and moving average are penetrated at around the same time, the two events reinforce each other.
9. D.
10. B. The solid line turns faster because it is front-loaded. Both averages in the chart have a time span of 50 days.
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