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25. Which of the following statement about technical analysis is wrong? A. A Simple Moving Average...

25. Which of the following statement about technical analysis is wrong?

A. A Simple Moving Average is simply the average price (usually the closing price) over the last N periods.

B. Point & Figure Charts presents the Opening, High, Low and Closing prices

C. Support and resistance lines indicate likely ends of trends.

D. Technicians look for many patterns in the historical time series of prices.

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Answer #1

Answer:

Correct answer is:

B. Point & Figure Charts presents the Opening, High, Low and Closing prices

Explanation:

The correct statements are:

  • A Simple Moving Average is simply the average price (usually the closing price) over the last N periods.
  • Support and resistance lines indicate likely ends of trends.
  • Technicians look for many patterns in the historical time series of prices.

The statement that Point & Figure Charts presents the Opening, High, Low and Closing prices is wrong.

Point & Figure Charts plots price movements. It is OHLC chart that presents the Opening, High, Low and Closing prices

Hence correct option is option B and other options A, C and D are incorrect.

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