The DonchianBounce strategy is a trading strategy that uses various technical indicators to generate buy and sell signals. Here is a brief description of what the strategy does:
The strategy starts by populating several technical indicators on the given DataFrame, including Bollinger Bands, Donchian Channels, ADX (Average Directional Index), MFI (Money Flow Index), MACD (Moving Average Convergence Divergence), Stochastic Fast, RSI (Relative Strength Index), Fisher RSI, EMA (Exponential Moving Average), SAR (Stop and Reverse), and SMA (Simple Moving Average). The populate_entry_trend function identifies potential entry points for buying based on the configured conditions.
These conditions include the following:
The price crossing above the highest Fib level of the Donchian Channel (dc_hf).
If enabled, the price crossing below the Parabolic SAR (sar).
If enabled, the price crossing above the Simple Moving Average (sma). If enabled, the price crossing above the EMA50 (ema50). If enabled, the ADX value being above a specified threshold (buy_adx). The Donchian Channel gain (dc_gain) being greater than or equal to a specified value. The price crossing above the lower band of the Donchian Channel (dc_lower). The populate_exit_trend function identifies potential exit points for selling based on the configured conditions. These conditions include the following:
The price crossing below the upper band of the Donchian Channel (dc_upper). If enabled, the price crossing above the Parabolic SAR (sar). If the sell_hold option is enabled, no sell signals are generated. Overall, the DonchianBounce strategy combines multiple indicators to identify potential buy and sell signals based on price movements and technical patterns.