The ForexSignal strategy is a trading strategy that uses technical indicators to generate buy and sell signals for forex trading. Here's a short description of what the strategy does:
The strategy first populates indicators for both the main dataframe and an informative dataframe. The informative dataframe contains indicators calculated on a higher timeframe (1 hour).
The indicators used are the Exponential Moving Average (EMA) with different time periods (8, 13, and 21).
For the main dataframe, the strategy calculates EMAs with time periods of 8, 13, and 21.
The informative dataframe is merged into the main dataframe, filling any missing values. To populate the buy signal, the strategy checks for specific conditions:
The 8-period EMA of the informative dataframe is higher than the 21-period EMA, indicating an uptrend. The 8-period EMA of the main dataframe is higher than the 13-period EMA, which is higher than the 21-period EMA. The low price of the current candle is lower than the 8-period EMA of the main dataframe. If all these conditions are met, the 'buy' column of the dataframe is set to 1, indicating a buy signal. To populate the sell signal, the strategy checks if the 8-period EMA of the main dataframe is lower than the 8-period EMA of the previous candle. If this condition is met, the 'sell' column of the dataframe is set to 1, indicating a sell signal. The strategy provides a way to backtest and evaluate the performance of these buy and sell signals in forex trading.