This post is part of the T4p Series. In the previous post, I had discussed the engulfing pattern. In this post, we will discuss Moving Averages. What Is Moving Average Moving Averages are one of the most widely used indicators. They smooth out price fluctuations by calculating the average price over a specific number of periods, creating a trend-following line that updates as new data becomes available, hence helping traders identify the overall direction of the price movement. Types Of Moving Averages Simple Moving Average (SMA) – Calculates the arithmetic mean of prices over a set period, giving equal weight to all data points Exponential Moving Average (EMA) – Gives more…
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Detecting the Engulfing Pattern Using pandas-ta
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…
