The DonchianBounce strategy is a trading strategy that uses various technical indicators to determine buy and sell signals. Here's a breakdown of what the strategy does:
In the populate_indicators function, the strategy adds several technical indicators to the given DataFrame. These indicators include Bollinger Bands, Donchian Channels, Average Directional Index (ADX), Directional Movement Indicator (DMI), Money Flow Index (MFI), Moving Average Convergence Divergence (MACD), Stochastic Fast, Relative Strength Index (RSI), Fisher Transform of RSI, Exponential Moving Averages (EMA), and Stop and Reverse (SAR).
In the populate_buy_trend function, the strategy defines the conditions for generating buy signals.
The conditions include:
Checking if the highest Fibonacci level (dc_hf) is not null.
If SAR (Stop and Reverse) is enabled, checking if SAR is not null and if the close price is below SAR. If SMA (Simple Moving Average) is enabled, checking if SMA is not null and if the close price is above SMA. If EMA (Exponential Moving Average) is enabled, checking if EMA50 is not null and if the close price is above EMA50. If ADX (Average Directional Index) is enabled, checking if the ADX value is above a certain threshold. Checking if the Donchian Channel gain (dc_gain) is greater than or equal to a specified value. Checking for a specific price action pattern involving the Donchian Channel lower band and the current and previous close prices. In the populate_sell_trend function, the strategy determines the conditions for generating sell signals. The conditions include:
Checking for a specific price action pattern involving the Donchian Channel upper band and the current and previous close prices. If SAR (Stop and Reverse) is enabled, checking if SAR is not null and if the close price is below SAR. The strategy updates the DataFrame with the generated buy and sell signals. Overall, the DonchianBounce strategy combines multiple technical indicators to identify potential buying and selling opportunities in the market.