Technical Analysis for Stock Prices: Understanding Moving Averages on Heavy Volume

Technical Analysis of Stock Prices

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If the current stock price breaks through its moving average from below on heavy volume, most technical analysts would consider this a to be a

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A. B. C. D.

D

Technical analysts use moving averages of past stock prices as indicators of long-term trends. When the current stock price breaks through its moving average from below on heavy volume, this is viewed as a bullish sign possibly signaling a reversal in the declining price trend.