(b) How the Buy and Sell signals are provided by Moving Average Analysis?

CA Final · Advanced Financial Management · RTP · September 2025
(b) How the Buy and Sell signals are provided by Moving Average Analysis?

Suggested Answer and Working Notes:

(b) The buy and sell signals provided by moving average analysis are as follows: Buy Signal Sell Signal (a) Stock price line rise through the moving average line when graph of the moving average line is flattering out. (a) Stock price line falls through moving average line when graph of the moving average line is flattering out. (b) Stock price line falls below moving average line which is rising. (b) Stock price line rises above moving average line which is falling. (c) Stock price line which is above moving average line falls but begins to rise again before reaching the moving average line (c) Stock price line which is slow moving average line rises but begins to fall again before reaching the moving average line.

Topics: Security Analysis

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