Triple Confirmation Trading Strategy
An Innovative Way to Trade Expected Reactions
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Trading strategies are composed of multiple conditions. Technical trading strategies are the same but use conditions from technical indicators. This article presents an example of a strategy that can use technical rules.
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The Basic Ingredients of the Strategy
The strategy is composed of three known technical indicators:
- A 2-period relative strength index (RSI).
- A 14-period stochastic oscillator.
- A MACD oscillator.
As a refresher, the RSI and the stochastic oscillator are normalization technique that trap the price action between 0 and 100 while the MACD is the difference between two moving averages that gives out trend following signals.
To code the indicators in Python while you have a numpy array, you can use the following:
def add_column(data, times):
for i in range(1, times + 1):
new = np.zeros((len(data), 1), dtype = float)
data = np.append(data, new, axis = 1)return datadef delete_column(data, index, times):
for i in range(1, times + 1):
data = np.delete(data, index, axis = 1)return datadef delete_row(data, number):
data = data[number:, ]
return data
