If a moving average of the Dow Jones industrial
Average crosses the Dow Jones industrial average,
A) the direction of security prices has changed
B) stock prices will stabilize
C) stock prices will go through a period of fluctuation
D) the investor should take profits

Question

Quizplus · Accepted Answer

When a moving average of the Dow Jones industrial average crosses the Dow Jones industrial average, it indicates a change in the direction of security prices. This is known as a crossover and can be a signal for investors to buy or sell stocks depending on the direction of the crossover. Therefore, the best choice is A.

If a Moving Average of the Dow Jones Industrial