Technical Analysis Day 3 - MA and EMA

Which of the following is NOT an important consideration in trading using Moving Averages?

• price must be above your MAs

• price must have crossed above your longer MAs

• price must be far from your significant MAs

• using MAs in a sideways market

In our use of MAs, what very important data does it track in your price chart?

• highest price of the day

• closing price of the day

• lowest price of the day

• opening price of the day

Which of the following accurately describes the difference between your SMA and EMA?

• sensitivity each one shows to changes in the data used in its calculation

• SMA gives a higher weighting to recent prices, while the EMA assigns an equal weighting to all values.

If EMA gives a higher weighting to recent prices, while the SMA assigns an equal weighting to all values, which of them is more SENSITIVE to price fluctuation?

• SMA (Smooth Moving Average)

• EMA (Exponential Moving Average)

Which MA period can tell if the stock has completely gone out of the bear territory?

• 9

• 20

• 50

• 200

This occurs when the 50-day SMA crosses below the 200-day SMA.

• golden cross

• death cross

This occurs when a short-term SMA breaks above a long-term SMA

• golden cross

• death cross

TRUE or FALSE: A golden cross reinforced with high trading volume gives bullish signal and higher gain may be in store.

• TRUE

• FALSE

Looking at $CEB and relying on your moving averages only, what is the current general sentiment of the stock?

• bearish

• bullish

Using your MAs, what can be best describe of the Vista Land's stock?

• bullish

• bearish