Question

5. An exponentially smoothed moving average a. excludes older price points in the calculation b. gives more weight to more recent observations c. cannot be plotted on a bar chart d. none of the above e. all of the above 6. Most oscillators are constructed a. so that the mid-point goes through zero b. on a semi-logscale to highlight momentum c. so that all points are positive in value d. without an upper boundary e. none of the above

Answer 1

5.
Option B. gives more weight to more recent observations.

An exponentially smoothed moving average is a weighted moving average. In exponentially smoothed moving average, the weight factors are powers of S, the smoothing constant. An exponentially smoothed moving average gives more weight to more recent observations.

6.
Correct answer is Option A.
Most oscillators are constructed so that the mid point goes throgh zero. Oscillator is a technical analysis tool. It is used to discover short term overbought or oversold conditions. It is a technical analysis that varies over time within a band.