Question: Question 3 6 1 pts While the 5 0 - day and 2 0 0 - day SMAs are the standard for identifying a death

Question 36
1 pts
While the 50-day and 200-day SMAs are the standard for identifying a death cross, some traders might adjust these parameters (and we did in this class by using the 30-day SMA). What is a potential reason why a trader might choose to use different moving average lengths when looking for similar bearish crossover signals?
To increase the frequency of signals and capitalize on short-term pricefluctuations.
To ensure the signals align perfectly with those generated by other popular technical indicators.
To tailor the sensitivity of the signal to the specific trading timeframe or the characteristics of the asset being analyzed.
To eliminate the possibility of false positive signals.
Question 3 6 1 pts While the 5 0 - day and 2 0 0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!