The AwesomeMacd strategy is a trading strategy that uses the MACD (Moving Average Convergence Divergence) and AO (Awesome Oscillator) indicators to generate buy and sell signals. Here's a breakdown of how the strategy works:
Indicators:
ADX (Average Directional Index): It measures the strength of a trend in the market. AO (Awesome Oscillator): It calculates the difference between a 34-period and 5-period simple moving average.
Buy Signal:
Conditions for buying:
MACD (macd) is greater than 0 (indicating a bullish trend).
AO (ao) is greater than 0.
AO in the previous period (ao.shift()) was less than 0. When these conditions are met, a 'buy' signal is generated. Sell Signal:
Conditions for selling:
MACD (macd) is less than 0 (indicating a bearish trend). AO (ao) is less than 0. AO in the previous period (ao.shift()) was greater than 0. When these conditions are met, a 'sell' signal is generated. The strategy sets a minimal ROI (Return on Investment) of 0.1 and a stop loss of -0.25, which are predefined values for this specific strategy. The timeframe used for analysis is 1 hour. This strategy aims to capture trends by identifying potential buying opportunities when the MACD and AO indicators align with specific conditions and selling opportunities when they diverge.