Moving Average, Envelope & Bollinger Bands

Which type of moving average is quick-moving and is good at showing recent price swings?

• Simple Moving Average

• Weight Moving Average

• Exponential Moving Average

If price closes below the LOWER MA envelope, you should...

• Wait for Retracement

• Sell

• Buy

A moving average envelope consists of...

• A moving average and 2 envelopes

• Two trend lines and a price channel

• A moving average and 2 other lines

In calculating moving average envelopes, what do you do after selecting the number of time periods you wish to apply?

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• Decide whether you want to use a simple or exponential moving average.

• Set the percentage value you'd like to use for your envelopes.

Exponential Moving Average give ___ weight to the most recent periods.

• more

• less

• equal

You get a clearer signal of whether the pair is trending up or down if you plot…

• Two or more moving averages

• Only one moving average

• No moving averages

If the positioning of short-term moving averages relative to long-term moving average shows the DIRECTION of the trend, what does the spacing between the moving averages show?

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• The difference in speed of moving averages

• The strength of the trend

With the use of SMAs, we can tell whether a pair is trending up, trending down, or just ranging.

• True

• False

• Maybe

Which type of moving average displays a smooth chart which eliminates most fakeouts?

• 20-Days SMA

• 200-Days SMA

• 20-Days EMA

• 200-Days EMA

To make a moving average smoother, you should get the average closing prices over…

• Shorter period of time

• Longer period of time