The moving average generates sell signals ________.
A) on days 3, 11, and 15
B) on days 7, 15, and 18
C) on days 5, 9, and 13
D) on day 16

Question

The moving average generates sell signals ________.
A) on days 3, 11, and 15 
B) on days 7, 15, and 18 
C) on days 5, 9, and 13 
D) on day 16

Quizplus · Accepted Answer

The moving average generates a sell signal when the price falls below the moving average. Looking at the chart, the moving average is a 5-day moving average. The price falls below the moving average on days 7, 15, and 18. Therefore, choice B is the correct answer.

The Moving Average Generates Sell Signals ________