(Solved) : Consider Daily Stock Close Price Bank America Bac August 21 2009 August 20 2010 File Sp500 Q32682622 . . . .

Consider the daily stock close price for Bank of America (BAC)from August 21, 2009 to August 20, 2010 in the filesp500hst.txt.

(1) Build a momentum trading strategy based on the MovingAverage Convergence/Divergence (MACD) method. Note that you need touse the fast EMA (11 days) and the slow EMA (22 days) for thisassignment.

(2) Build a momentum trading strategy based on the RelativeStrength Index (RSI) method. Note that you need to use N=14 daysfor this assignment, and use overbought and oversold marketparameter of 80 and 20 respectively.

(3) Compare and contrast the differences of these twostrategies. Write your analysis and recommendation.

file sp500hst.txt attachement below

Date,Ticker,Open,High,Low,Close,Volume

20090821,A,25.6,25.61,25.22,25.55,34758

20090824,A,25.64,25.74,25.33,25.5,22247

20090825,A,25.5,25.7,25.225,25.34,30891

20090826,A,25.32,25.6425,25.145,25.48,33334

20090827,A,25.5,25.57,25.23,25.54,70176

20090828,A,25.67,26.05,25.63,25.83,39694

20090831,A,25.45,25.74,25.31,25.68,51064

20090901,A,25.51,26.33,25.48,25.85,66422

20090902,A,25.97,25.97,24.96,25.22,64614

20090903,A,25.47,25.54,25,25.29,46369

20090904,A,25.37,25.92,25.1475,25.86,32556

20090909,A,26.31,27.19,26.16,27.15,36764

20090910,A,27.08,27.88,26.94,27.86,42987

20090911,A,27.88,28.16,27.75,28.05,43907

20090914,A,27.86,28.18,27.64,28.1,35156

20090915,A,28.01,28.38,27.65,28.32,33180

20090916,A,28.33,28.77,28.33,28.63,32339

20090917,A,28.59,28.82,28.175,28.49,39189

20090918,A,28.69,28.73,27.82,28.37,44366

20090921,A,28.73,29.38,28.62,28.81,56186

20090922,A,28.96,28.96,28.39,28.53,47308

20090923,A,28.59,28.83,28.15,28.27,44547

20090924,A,28.38,28.45,27.58,27.83,29750

20090925,A,27.77,27.84,27.48,27.58,36891

20090928,A,27.69,28.23,27.49,27.89,21000

20090929,A,27.8,28.13,27.705,27.9,31254

20090930,A,28.06,28.07,27.51,27.83,45318

20091001,A,26.63,27.32,26.31,26.61,54585

20091002,A,26.41,26.47,25.95,26.31,35743

20091005,A,26.29,26.98,26.21,26.82,31912

20091006,A,27.17,27.47,26.92,27.22,28873

20091007,A,27.07,27.2,26.8905,27.1,15895

20091008,A,27.5,27.75,27.31,27.4,33654

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