Asked by Jennifer Robert on Apr 24, 2024
Verified
________ is a tool that can help identify the direction of a stock's price.
A) Prospect theory
B) Framing
C) A moving average
D) Conservatism
Moving Average
A statistical measure used to analyze data points by creating a series of averages of different subsets of the full data set.
Prospect Theory
A theory in behavioral economics that evaluates how people choose between probabilistic alternatives that involve risk.
Framing
The way information is presented or structured, which can significantly influence decision-making processes and perceptions.
- Gain a thorough understanding of technical analysis, specifically the interpretation of charts, the analysis of ratios, and comprehending support and resistance levels.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
C
Explanation :
A moving average is a technical analysis tool that calculates the average price of a stock over a set period of time. By looking at the direction of the moving average line, traders can get an idea of the trend of the stock's price, and can make informed decisions about whether to buy, sell, or hold their positions. A moving average is just one of many indicators that traders may use to determine the direction of a stock's price, but it is a widely used and respected tool in the industry.
Learning Objectives
- Gain a thorough understanding of technical analysis, specifically the interpretation of charts, the analysis of ratios, and comprehending support and resistance levels.