

MCQOPTIONS
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1. |
A. Many so-called indicators for stocks and indexes take on complex hues, such as taking on moving averages of moving averages and so on. B. A moving-average-based indicator will always be a little late, and you should naturally be suspicious of any formula that can predict the next move, based purely on moving averages of price. C. The moving average is simply a smoothing function it gets rid of periodic volatility to tell you the recent trend. D. At best, they can tell you a trend, and if the hypothesis is that the trend will sustain, and that bears out historically in enough instances, you might have a hope with it. E. But smoothing has its disadvantages; it reacts slowly to sudden changes, so it will only tell you that the trend has changed after the trend has changed, sometimes too late to actually take action. |
A. | A B C D E |
B. | D B C A E |
C. | A C E B D |
D. | B E C A D |
Answer» D. B E C A D | |