Question: 1)Application of Quantitative Indicators (5 marks) Your objective is to apply quantitative indicators to generate trading signals for the 5 stocks (SU, RY, TSLA, L

1)Application of Quantitative Indicators (5 marks)

Your objective is to apply quantitative indicators to generate trading signals for the 5 stocks (SU, RY, TSLA, L and ABX) that are available in the trading exercise.Pick two trend-following indictors and three momentum indicators we covered in the class.You will need to use the technical analysis tool available atwww.stockcharts.comfor this exercise.

a)Identify any crossover, positive/negative divergence, extreme values and other breakouts or signals on the 3-month charts

b)Summarize your signals (buy, sell or neutral) in the following table:

2)Designing and Developing a New Money Flow Indicator (5 marks)

Two kinds of money flow indicators, i.e. MFI and CMF were covered in the course.Your task is to design a new money flow indicator which incorporates information on both price and volume.

a)Show your formula and how your new money flow indicator is calculated

b)Develop a trading rule (i.e. when to buy and when to sell) using your MF indicator

c)Calculate and graph your money flow indicator along with the closing prices of your favorite stock (Note: You can download historical prices and volume from Yahoo Finance.)

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