This post is part of the T4p Series. In the previous post, I discussed the Hammer Pattern. So far, we have been writing everything from scratch to detect a certain pattern. However, there’s an amazing library available that has done all the heavy lifting on our behalf and provides easy-to-use interfaces to detect patterns. I will be using the pandas-ta library for this purpose. For certain patterns, it relies on the TA-Lib library, a C++ library for technical analysis. What Is The Engulfing Pattern The Engulfing Pattern is a two-candle pattern that hints at a possible reversal in price direction. It consists of two candlesticks: Bullish Engulfing Pattern: This pattern shows up when prices…
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Getting Started with Candlesticks and Python
This post is part of the T4p Series. In this post, we will briefly discuss candlesticks, their basics, types, and how you can use OHLC data to identify them. I’ll aim to keep it short and to the point. What is a CandleStick Candlesticks are graphical representations of price movements in financial markets, typically showing the opening, closing, high, and low prices for a specific time period. History of CandleSticks Candlestick charting has a rich history that dates back centuries. It originated in Japan during the 18th century, long before the advent of modern financial markets as we know them today. The story begins with Munehisa Homma, a Japanese rice…
