Average Directional Index The direction or trend has played a major role in the financial market. An increase or decrease in the price of a financial instrument can occur for two reasons: randomness or fundamental factors. There is a saying in the financial market “The trend is your friend”. The Average Directional Index is a…
Candlestick patterns have been a fundamental part of technical analysis in the world of trading for many years. Among the multitude of candlestick patterns, the Doji is one of the most widely recognized. We make a doji candlestick trading strategy. A Doji is a candlestick pattern that represents indecision in the market, and it can provide…
Investors often evaluate the performance of their portfolios by examining various metrics, and one crucial measure is drawdown. Drawdown represents the peak-to-trough decline in the value of a stock or portfolio during a specific period. It helps investors assess the risk and volatility associated with their investments. In this article, we will explore how to…
Introduction This tutorial will explain how to implement the Parabolic SAR indicator to build a trading strategy in Python, and along the way, it will introduce the Object Oriented Programming (OOP) approach to download the data, calculate the Parabolic SAR strategy, and generate the buy and sell signals. It’s all about how to build a…
Introduction This tutorial will explain the Ichimoku Cloud indicator, and it will implement a trading example in Python using data from the iShares Core US Aggregate Bond ETF (AGG) and the Energy Select Sector SPDR Fund (XLE). Along the way, you will learn how to use the mplfinance Python package to generate candle charts. The…
In this article, we will build a profitable trading strategy in Python. We will implement the strategy in different market scenarios to draw insight: How to build a profitable VWAP trading strategy with Python. Related reading: Trading and Hypothesis Testing Scientific knowledge advances upon the idea of hypothesis testing, and we aim to do the…
This article will explain how to implement the OBV (On Balance Volume) to the Amazon (AMZN) stock. The first part will explain the idea behind the indicator, while the second part will implement a trading strategy based on the OBV. The article is written only for illustrative purposes: How I made a profitable OBV strategy…
This article will explain how to backrest a Weighted Moving Average in Python. In the first part, there will be a brief introduction and explanation of this indicator. Subsequently, we will implement a Python example to calculate the result of the trading strategy. Finally, we will implement a for-loop with our strategy. Related reading: What…
Triple Exponential Moving Average (TEMA) This indicator is used to identify the trend, retracement, and potential support and resistance. After the development of the Double Exponential Moving Average (DEMA), Patrik Mulloy enhanced the indicator and developed the TEMA. The interpretation of the indicator is similar to a moving average; when the indicator goes up, it…
In this tutorial, we will implement a trading strategy using the ATR indicator. The first part will explain this indicator. Then, we will show a practical example in Python using the SPY data. Throughout this tutorial, we will implement various Python functions. This is how I build a profitable ATR-based trading strategy with Python. Related…
