Question
Technicians use moving-average lines to detect changes in trends by observing the interaction between the price of an asset and its moving average over
Technicians use moving-average lines to detect changes in trends by observing the interaction between the price of an asset and its moving average over a specific period. Consider a stock whose price data over the past 10 days are as follows: Day 1 N 3 4 5 10 6 7 B 10 Stock Price ($) 54.50 54.25 55.75 56.50 57.25 56.00 54.75 53.25 52.50 53.00 5-Day Simple Moving Average ($) Trend Assume a simple moving average (SMA) is calculated over a 5-day period. Calculate the SMA for each day, and based on the SMA, identify any potential changes in the trend during the 10-day period.
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
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