Important Points for IC 99 - Asset Management Exam
Page 61 Of 109
Go to:
The three most common types of moving averages are simple, linear and exponential.
The Simple Moving Average (SMA) is often used to identify trend direction, but can be used to generate potential buy and sell signals. The SMA is an average, or in statistical speak - the mean.
A simple moving average is formed by computing the average price of a security over a specific number of periods.
Technical analysis assumes that demand and supply aspects of a security are surrounded or assisted by other factors which may be both; rational as well as irrational.
While doing technical analysis, the parameters that will be analysed by the technical analyst include share price, volumes traded, volatility, trend and other market information through data, charts and analysis etc. Facts of the company are analysed by the fundamental analyst.
MODELEXAM® 
www.realsoftinfoplan.com