Technicians use moving-average lines to detect changes in trends by observing the interaction between the price of an asset and its moving average over a specific period. Consider a stock whose price data over the past 10 days are as follows: Day 1 2 3 4 5 6 7 8 9 10 Stock Price ($) 54.50 54.25 55.75 56.50 57.25 56.00 54.75 53.25 52.50 53.00 5-Day Simple Moving Average ($) Trend Assume a simple moving average (SMA) is calculated over a 5-day period. Calculate the SMA for each day, and based on the SMA, identify any potential changes in the trend during the 10-day period.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Technicians use moving-average lines to detect changes in trends by observing the
interaction between the price of an asset and its moving average over a specific
period. Consider a stock whose price data over the past 10 days are as follows:
Day
1
2
3
4
5
6
7
8
9
10
Stock
Price ($)
54.50
54.25
55.75
56.50
57.25
56.00
54.75
53.25
52.50
53.00
5-Day
Simple
Moving
Average
($)
Trend
Assume a simple moving average (SMA) is calculated over a 5-day period.
Calculate the SMA for each day, and based on the SMA, identify any potential
changes in the trend during the 10-day period.
Transcribed Image Text:Technicians use moving-average lines to detect changes in trends by observing the interaction between the price of an asset and its moving average over a specific period. Consider a stock whose price data over the past 10 days are as follows: Day 1 2 3 4 5 6 7 8 9 10 Stock Price ($) 54.50 54.25 55.75 56.50 57.25 56.00 54.75 53.25 52.50 53.00 5-Day Simple Moving Average ($) Trend Assume a simple moving average (SMA) is calculated over a 5-day period. Calculate the SMA for each day, and based on the SMA, identify any potential changes in the trend during the 10-day period.
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