"Buy a stock if its price moves up by 2% more than the Dow Average" is an example of a _________________.A. trading ruleB. market anomalyC. fundamental approachD. passive trading strategy

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16-10-2019
Business

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"Buy a stock if its price moves up by 2% more than the Dow Average" is an example of a _________________.A. trading ruleB. market anomalyC. fundamental approachD. passive trading strategy

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rejkjavik rejkjavik · Answer 1 · 2019-10-16T07:04:41+02:00

Answer:

Purchase a stock when its price is 2% lower than that of the Dow Average "is an explanation of a passive trading strategy. A passive trading strategy is basically refer to filter rule.

Explanation:

Purchase a stock when its price is 2% lower than that of the Dow Average "is an explanation of a passive trading strategy. A passive trading strategy is basically refer to filter rule.

A filter rule is a market technique where a technical consultant defines rules for buying and selling securities based on percentage deviates from previous rates. The filter rule is usually based on market momentum or the assumption that increasing prices tend to keep rising and falling prices tend to keep falling