FE570 Homework Assignment #3 Due Date: In class on April 23(Tuesday). Data Files: Datasets are available from the coursewebsite on Moodle. Problem 1 Consider the daily stock close pricefor Back of America (BAC) from August 21, 2009 to August 20, 2010in the file sp500hst.txt. (1) Build a momentum trading strategybased on the Moving Average Convergence/Divergence (MACD) method.Note that you need to use the fast EMA (12 days) and the slow EMA(26 days) for this assignment. (2) Build a momentum tradingstrategy based on the Relative Strength Index (RSI) method. Notethat you need to use N=14 days for this assignment, and useoverbought
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