Technical Indicators on Different Charting Systems.

Using Technical Indicators on K’s Candlestick Charts.

Complex strategies also form an important part of trading where they can detect hidden patterns that have more predictable outcomes than obvious patterns. In this article, we combine a variation of the famous RSI on a variation of the regular candlestick and a candlestick pattern as a filter to enhance the quality of the signals. The study is done in Python.

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Trend Following Strategies in Python: How to Use Indicators to Follow the Trend.

Regular Candlestick Charts

Candlesticks are a quick way to understand OHLC data and detect patterns. It is very straightforward and easy to interpret. A bullish (typically green) candle is when the market closes above its opening price. A bearish (typically red) candle is when the market closes below its opening price.

Let us see a full chart of candlestick to understand more how it is shown. The trend is clearly bullish with some corrections seen around the red candles. Notice the small candles where the opening price is almost the same as the closing price. This is called a Doji and signifies indecision and shows a possible reversal or consolidation.

Example of a candlestick chart on the EURUSD.

def ohlc_plot(Data, window, name):
      
    Chosen = Data[-window:, ]…