Moving Averages
Chapter 11 Review Questions
- What are the basic functions of a moving average?
- What is the difference between truncated and continuous-type moving averages?
- Describe the number of ways to increase the sensitivity of moving averages.
- How is an EMA different from an SMA?
- How would you gauge the strength of a trend using moving averages?
- How would you gauge the relative levels of overextension in the market using
moving averages? - List as many ways as you can where a moving average can generate buy and
sell signals. - Explain the difference between detrending and smoothing.
refereNCeS
Appel, Gerald. 2005. Technical Analysis: Power Tools for Active Traders. Upper Saddle
River, NJ: Financial Times Prentice Hall.
Murphy, John. 1999. Technical Analysis of the Financial Markets. New York: New York
Institute of Finance (NYIF).
Pring, Martin J. 002. Technical Analysis Explained: The Successful Investor’s Guide to
Spotting Investment Trends and Turning Points. 4th ed. New York: McGraw-Hill.
Wilder, J. Welles, Jr. 978. New Concepts in Technical Trading Systems. McLeansville, NC:
Trends Research.