Gather the daily high, low, and closing prices for McDonald’s stock (ticker symbol MCD) for January 2014 through July 2015 from Yahoo! Finance or anotherelectronic source.

a. Using a spreadsheet, calculate 10-day and 60-day SMAs. Plot these two curves with a bar chart of thestock prices.

b. Compare and contrast the 10-day and the 60-day SMA.

c. Explain the relationship between the market trend and the 60-day SMA during the following periods:

i. May 2014–September 2014 ii. October 2014–February 2015 iii. March 2015–July 2015

d. Find a point in your graph where the faster moving average crosses the slower moving average.

What type of signal would occur at this point? In hindsight, would trading on that signal have been profitable? Why or why not?

e. Construct DI+ and DI– for McDonald’s for the period August 2014–March 2015.

i. Interpret DI+ during this time.

ii. Interpret DI– during this time.

iii. Compare DI+ and DI– with the price movement over this time. What type of relationships do you see?