The DNSTrader strategy is a trading strategy that aims to identify and take advantage of bullish market conditions. Here's a short description of what the strategy does:
The strategy uses candlestick data to identify bullish engulfing patterns and determines the closest bull zone based on the previous range. It calculates the relative strength index (RSI) for the given timeframe and analyzes the percentage change in RSI over the next four candles.
The strategy looks for specific criteria to open a position:
If there is a bullish engulfing pattern and the current close price is lower than the identified bull zone, and the distance between the close price and the bull zone is within a specific limit, a buy signal is generated.
Once a position is open, the strategy monitors the current close price.
If the close price falls below the last identified bull zone, a sell signal is generated, and the position is closed. The strategy provides additional functionality to generate buy and sell messages for notifications. Please note that this is a simplified explanation of the strategy, and there may be additional intricacies and details in the code implementation.