In reference to moving averages,another traditional technique used in charting:

A) Will help determine if the company is slightly overbought but no reversal is expected
B) will help determine if the company looks overbought and the outlook is bearish
C) it is possible to use multiple moving averages in combination
D) technicians use a moving average to indicate short term trends

Question

In reference to moving averages,another traditional technique used in charting:

A) Will help determine if the company is slightly overbought but no reversal is expected
B) will help determine if the company looks overbought and the outlook is bearish
C) it is possible to use multiple moving averages in combination
D) technicians use a moving average to indicate short term trends

Quizplus · Accepted Answer

Another traditional technique used in charting is the moving average line.Technicians use a moving average to indicate long-term trends.A 200-day moving average is a popular time length;however,smaller periods are also popular,particularly when used in combination with longer period moving averages.If the overall price trend has been down,then the moving average line would generally lie above current prices.If prices reverse and break through the moving average line from below,with heavy volume,then this is a break-out and the signal is bullish and to buy.

In Reference to Moving Averages,another Traditional Technique Used in Charting