Question 4 (10 marks)

Moving Averages

(a) Calculate:

1. 5-day Simple Moving Average (SMA)

(3 marks)

2. 5-day Weighted Moving Average (WMA)

(3 marks)

3. 5-day Exponential Moving Average (EMA)

(2 marks)

May	Price	5SMA	5WMA	5EMA
13	11,535.27
16	11,354.62
17	11,388.50
18	11,418.15
19	11,984.52
20	11,662.79
23	11,805.00

Note: Give answers in the above table to the nearest whole number. Show all working and steps in the answer booklet.

(b) On a downtrend, list the nearest to the furthest moving average lines relative to price, i.e. Simple, Weighted and Exponential moving averages.