Question

# Moving-averages:

A
Give the trend in a straight line
B
Measure the seasonal variations
C
Smooth-out the time series
D
None of them

Solution

## The correct option is C Smooth-out the time series$$\Rightarrow$$  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.Maths

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