Why shorter term moving average is considered to be a faster

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Reference no: EM131233411

a. Explain why a shorter-term moving average is considered to be a "faster" moving average and a longer-term moving average is considered to be a "slower" moving average.

b. Sophia says that she is watching a 10-day SMA and a 60-day SMA of her favorite stock, and she is planning to purchase the stock when the 10-day SMA crosses above the 60-day SMA. Explain the rationale for Sophia's strategy.

Reference no: EM131233411

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