The "Patterns2" strategy is a trading strategy that utilizes several technical indicators to generate buy signals for a given financial asset. Here is a breakdown of what the strategy does:
In the "populate_indicators" method, the strategy adds the following indicators to the input DataFrame:
Money Flow Index (MFI)
Relative Strength Index (RSI)
Bollinger Bands (bb_lowerband and bb_upperband)
Bollinger Bands gain (bb_gain)
Simple Moving Average (SMA)
Candlestick pattern indicators (CDLHAMMER, CDLINVERTEDHAMMER, CDLDRAGONFLYDOJI, CDLPIERCING, CDLMORNINGSTAR, CDL3WHITESOLDIERS, CDLHANGINGMAN, CDLSHOOTINGSTAR, CDLGRAVESTONEDOJI, CDLDARKCLOUDCOVER, CDLEVENINGDOJISTAR, CDLEVENINGSTAR, CDL3LINESTRIKE, CDLSPINNINGTOP, CDLENGULFING, CDLHARAMI, CDL3OUTSIDE, CDL3INSIDE)
In the "populate_buy_trend" method, the strategy determines the buy signal based on the indicators and specified conditions:
If RSI is less than or equal to a specified value and greater than 0 (buy_rsi_enabled and buy_rsi)
If the closing price is below the SMA (buy_sma_enabled)
If MFI is less than or equal to a specified value (buy_mfi_enabled and buy_mfi)
If the Bollinger Bands gain is greater than or equal to a specified value (buy_bb_enabled and buy_bb_gain)
If specific candlestick pattern indicators have a strength greater than or equal to a specified value (buy_CDL* enabled and pattern_strength)
In the "populate_sell_trend" method, the strategy populates the sell signal as 0 for all data points in the DataFrame. Overall, the strategy combines various technical indicators and candlestick patterns to generate buy signals based on specified conditions.