How to Create a Function that Fetches Market Sentiment Data.
Market sentiment is an extremely important part of trading. It allows us to understand the positioning of the players who potentially could move the markets. Knowing that the majority of hedge funds are bullish on an asset gives us more confidence to invest in it. Similarly, knowing that almost all of the hedge funds are bullish on an asset could give us a signal that the market may be overly bullish and that it is wiser to wait before investing or even be brave enough to initiate a contrarian position in case the fundamentals start to justify it.
In this…
Presenting and Trading the Cipher Harmonic Pattern.
Harmonic Patterns are one of the powerful advanced price action techniques that are used to detect reactions. The thing that works about Harmonic Patterns is that they use the confluence method, meaning that they expect reactions from clusters of certain levels defined by Fibonacci retracements. The reason they work has nothing to do with mystic or magic whatsoever, it is simply the fact that Fibonacci retracements are used by many traders and their visibility makes reactions more likely, thus increasing the predictive power of the patterns. …
Creating a Combined Strategy Using Bollinger Bands & Keltner Channel in Python.
Combining strategies is always the right path towards a robust system. But does combining simple default indicators result in positive results? In this article, the Bollinger Bands and the Keltner Channel are used together to provide signals, the idea is to code them and see the results.
If you are also interested by more technical indicators and using Python to create strategies, then my latest book may interest you:
The Normal Distribution & The Foundation of Standard Deviation
One of the pillars of descriptive statistics or any basic analysis method is the concept of averages. Averages give us a glance of the next expected value given a historical trend…
Presenting and Trading the Golden Harmonic Pattern.
Harmonic Patterns are one of the powerful advanced price action techniques that are used to detect reactions. The thing that works about Harmonic Patterns is that they use the confluence method, meaning that they expect reactions from clusters of certain levels defined by Fibonacci retracements. The reason they work has nothing to do with mystic or magic whatsoever, it is simply the fact that Fibonacci retracements are used by many traders and their visibility makes reactions more likely, thus increasing the predictive power of the patterns. …
Presenting and Trading the Arrow Harmonic Pattern.
Harmonic Patterns are one of the powerful advanced price action techniques that are used to detect reactions. The thing that works about Harmonic Patterns is that they use the confluence method, meaning that they expect reactions from clusters of certain levels defined by Fibonacci retracements. The reason they work has nothing to do with mystic or magic whatsoever, it is simply the fact that Fibonacci retracements are used by many traders and their visibility makes reactions more likely, thus increasing the predictive power of the patterns. …
Combining a Short-term Relative Strength Index With Moving Averages in Python.
Combining indicators is the first step towards creating a full and robust trading system. It starts by examining the different combinations of successful indicators and then choosing the optimal variations that deliver on average superior returns. In this article, a combined strategy is examined, back-tested, and compared to its solo counterpart.
If you are also interested by more technical indicators and using Python to create strategies, then my latest book may interest you:
The Concept of Moving Averages
Moving averages help us confirm and ride the trend. They are the most known technical indicator and this is because of their simplicity and their proven track…
Full Introduction and Back-test on the Three Line Strike Pattern.
Candlestick patterns deserve to be studied thoroughly and even though a strategy relying solely on them will be unstable and unprofitable, they can be a valuable addition into a full trading system that uses other techniques. In this article, we will see a full presentation and code of a two-candle pattern. Then, we will back-test it with and without risk management before judging its profitability and how we should interpret it.
If you are also interested by more technical indicators and using Python to create strategies, then my latest book may interest you:
Candlestick Charts
Candlestick charts are among the most famous…
Presenting and Trading the Harmonic 5–0 Pattern.
Harmonic Patterns are one of the powerful advanced price action techniques that are used to detect reactions. The thing that works about Harmonic Patterns is that they use the confluence method, meaning that they expect reactions from clusters of certain levels defined by Fibonacci retracements. The reason they work has nothing to do with mystic or magic whatsoever, it is simply the fact that Fibonacci retracements are used by many traders and their visibility makes reactions more likely, thus increasing the predictive power of the patterns. …
Coding and Back-testing the Disparity Index to Trade the Markets.
Distance analysis is sometimes very important to determine whether the market is about to reverse or correct. Statistically, we expect to remain in normality more often than extremes, therefore, when we do reach the extremes, we expect some form of reversion to the mean unless Euphoria is in hyperdrive and participants are excessively buying or selling following big news. In this article, we will discuss and code a simple indicator called the Disparity Index.
If you are also interested by more technical indicators and using Python to create strategies, then my latest book may interest you:
The Concept of Moving Averages
Moving averages help us…
Creating & Back-testing the Dynamic Relative Strength Index in Python.
What period should we put on the Relative Strength Index? This question is subjective and is personal to every analyst and trader. One solution to this dilemna is to try to automate the process of choosing the lookback period at every time step. In this article, we will see how to create a dynamically adjusted Relative Strength Index and then we will back-test it using Python.
The Relative Strength Index
The RSI is without a doubt the most famous momentum indicator out there, and this is to be expected as it has many strengths especially in ranging markets. It is also bounded between 0…
