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…
Introduction This tutorial will implement the Chaikin Oscillator in Python using historical financial data from the iShares Russell 1000 Growth ETF (IWF). The first part will briefly review the theory behind this indicator. The second part will code a trading strategy using this indicator in Python. Related reading: – Many more Python trading strategies Chaikin…
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 the construction of a Money Flow Index trading strategy to you in Python. Along the way, it will implement class inheritance approach to build the code. The aim of the article is to show the code how it’s done, not to make a superb trading strategy. The main Python packages…
The Relative Strength Index indicator is popular, for a reason, but in this article, I backtested the default settings of the RSI indicator, and made it better. Investments and trading is a wonderful world where large companies and small investors can participate from the comfort of their homes. You only need a device with internet…
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…
