Question: Suppose that a modified MACD method is used. In this method, 2-day, 3-day and 4-day EMA are used instead of 9-day EMA, 12-day EMA and

Suppose that a modified MACD method is used. In this method, 2-day, 3-day and 4-day EMA are used instead of 9-day EMA, 12-day EMA and 26-day EMA, respectively. Assume that the initial (i.e., for Day 0) 2-day EMA, 3-day EMA and 4-day EMA are $100, $102 and $103, respectively.

Compute the histogram value for Day 2 for the modified MACD method.

Day

Closing Price

1

$100

2

$115

3

$118

4

$115

5

$113

Answer for the histogram value (two decimal places): ___________

Calculation steps:

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