Hello,

Could a staff member reach out to me to clarify the answer to this quiz question. I got the right answer, but I am not 100% sure why it is correct.

Best,

David

Hello,

Could a staff member reach out to me to clarify the answer to this quiz question. I got the right answer, but I am not 100% sure why it is correct.

Best,

David

Hi David_Hudson,

Momentum uses a moving average. So if a value oscillates around 0, the oscillation will be dampened as negative values cancel out positive ones. If a value is in the same direction it becomes strengthened if steps in the past were larger than current ones - which is usually the case in a convergence process.