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Time series and forecasting - class-XII
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Moving-averages:
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A
Smooth-out the time series
💡 Explanation:
$\Rightarrow$ Moving-averages : $Smooth-out,the,time,series$.
$\Rightarrow$ A moving average is a widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations.
$\Rightarrow$ It is a trend-following, or lagging, indicator because it is based on past prices.