78,054 views
13 votes
13 votes
Why is stock data calculated using the subtraction and addition method instead of a simple moving average? PLEASE HURRY I AM TAKING A TEST

User Cata
by
2.9k points

1 Answer

22 votes
22 votes

Answer:

The moving average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. The average is taken over a specific period of time, like 10 days, 20 minutes, 30 weeks or any time period the trader chooses. There are advantages to using a moving average in your trading, as well as options on what type of moving average to use. Moving average strategies are also popular and can be tailored to any time frame, suiting both long-term investors and short-term traders.

Explanation:

One disadvantage to solving systems using substitution is that isolating a variable often involves dealing with messy fractions. There is another method for solving systems of equations: the addition/subtraction method.

In the addition/subtraction method, the two equations in the system are added or subtracted to create a new equation with only one variable. In order for the new equation to have only one variable, the other variable must cancel out. In other words, we must first perform operations on each equation until one term has an equal and opposite coefficient as the corresponding term in the other equation.

sorry it is so long, i hope this helps!

User Zan
by
2.9k points