One purpose of charting moving averages is
A) to distinguish trends from short-term random fluctuations.
B) to profit from short-term price movements.
C) to track supply and demand for stocks.
D) to study seasonal trends in security price movements.

Question

Quizplus · Accepted Answer

Moving averages smooth out price data to identify the direction of a market trend by filtering out the random price fluctuations, making it easier to distinguish between actual trends and short-term variations.

One Purpose of Charting Moving Averages Is