The Patterns strategy is a trading strategy that uses various technical analysis (TA) indicators to generate buy and sell signals for a given dataset. Here's a breakdown of what the strategy does:
populate_indicators function:
This function takes a DataFrame and adds multiple TA indicators to it. The indicators used include MFI (Money Flow Index), Stochastic Fast, RSI (Relative Strength Index), Fisher RSI, Bollinger Bands, EMAs (Exponential Moving Averages), SAR (Stop and Reverse), SMA (Simple Moving Average), and various candlestick pattern indicators.
The indicator values are calculated and added as columns to the DataFrame.
populate_entry_trend function:
This function uses the TA indicators populated in the previous step to determine the buy signals.
It defines conditions based on the values of different indicators, such as RSI, SMA, MFI, and specific candlestick patterns. If the conditions are met, the 'buy' column of the DataFrame is set to 1 for the corresponding rows. populate_exit_trend function:
This function uses the TA indicators to determine the sell signals. It defines conditions for selling based on the values of specific candlestick patterns and their strength. If the conditions are met, the 'sell' column of the DataFrame is set to 1 for the corresponding rows. Overall, the strategy combines multiple TA indicators and candlestick patterns to generate buy and sell signals based on predefined conditions.