When the Share Price Series Breaks Through a Flattening Moving

question 36

Multiple Choice

When the share price series breaks through a flattening moving average line from above,a technical analyst would probably suggest it is a good time to:

• A) buy the share.
• B) sell the share.
• C) hold the share.
• D) short the share.

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Definitions:

Independent Event

An independent event is an event whose outcome is not influenced by the outcome of another event; in probability, this means that the occurrence of one event does not change the probability of another.

Standardized Z Values

Values resulting from the standardization process that measures the number of standard deviations a data point is from the mean of its distribution.

Probability

An evaluation of event occurrence likelihood, represented as a numerical value ranging between 0 and 1.

Standard Normal Table

A reference table that provides the area under the curve of the standard normal distribution, often used to find probabilities and critical values.