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…
Can the SuperTrend Indicator and Moving Averages Provide Good Signals Together?
The Countdown Indicator is a contrarian indicator that I have developed for mostly discretionary trading. In parallel, moving averages can also hint at a possible market inflection through their dynamic support/resistance levels. What if we try to combine the two together to give us a timely signal of when a reaction should occur. This means that we will use signals from the Countdown Indicator and the Fibonacci moving average. The first two parts will introduce the indicators and the third part will present the strategy. The research is as always done in Python.
If you are also interested in more…
Full Introduction and Back-test on the Doji 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 the most famous candlestick 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…
A Step-by-Step Guide to This Famous Indicator and Its Strategies in Python.
The Stochastic Oscillator is one of the most common indicators in Technical Analysis. It allows us to have a quick glance as to whether the market is overbought or oversold. As controversial as this oscillator is, its utility is well known and many strategies can be formed around. A good number of such strategies are stable and profitable ones. In this article, we will build the indicator from scratch and discuss some of its simple strategies.
If you are also interested in more technical indicators and using Python to create strategies, then my latest book may interest you:
The Concept of Normalization
This great…
Presenting the Intuition and Code of the Fibonacci Timing Pattern.
I am always fascinated by patterns as I believe that our world contains some predictable outcomes even though it is extremely difficult to extract signals from noise, but all we can do to face the future is to be prepared, and what is preparing really about? It is anticipating (forecasting) the probable scenarios so that we are ready when they arrive.
Pattern recognition is the search and identification of recurring patterns with approximately similar outcomes. This means that when we manage to find a pattern, we have an expected outcome that we want to see and act on through our…
Full Introduction and Back-test on the Bottle 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 one-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…
Coding and Back-testing a Moving Average Strategy From Scratch in Python.
The most basic Trend-Following strategy is the cross between different-period moving averages as it can signal a potential change in the overall trend. Intuitively, it is a good strategy but we always need to back oir intuitions with numbers. The idea of the article is to create back-test from scratch at its basic form to have a preliminary idea on the results. Therefore, importing data and analyzing the results (with the code) are covered.
If you are also interested in more technical indicators and using Python to create strategies, then my latest book may interest you:
Importing Historical Data
One of the most…
Creating the Adaptive MACD in Python. A Study in Python.
We all know the MACD Oscillator as it is one of the most covered technical Indicators out there. It is used by many analysts and traders due to its simplicity and popularity. It is basically the difference between two exponential moving averages. But what if we use another type of moving averages? Like the very useful Adaptive moving averages. In this article, we will create the Adaptive MACD and see whether it beats the regular MACD or not.
If you are interested in more exotic and structured indicators, feel free to check out my latest book on Amazon:
The MACD Oscillator
The MACD…
Can the Countdown Indicator and Fibonacci Moving Averages Provide Good Signals Together?
The Countdown Indicator is a contrarian indicator that I have developed for mostly discretionary trading. In parallel, moving averages can also hint at a possible market inflection through their dynamic support/resistance levels. What if we try to combine the two together to give us a timely signal of when a reaction should occur. This means that we will use signals from the Countdown Indicator and the Fibonacci moving average. The first two parts will introduce the indicators and the third part will present the strategy. The research is as always done in Python.
If you are also interested in more…
A Step-by-Step Guide to This Famous Indicator and Its Strategies in Python.
The great Bollinger Bands are one of the first things we must learn when analyzing time series. This is because of their sound statistical reasoning, their wide adoption across market participants, and their success when deployed in trading strategies. But we sometimes fail to understand them quite properly. We can also see other variations that resemble the Bands in an attempt to enhance it. In this article, we will start from the basics of descriptive statistics and work our way up to creating the Bollinger Bands in Python. …
