The RSIDirectionalWithTrend strategy is a trading strategy that uses the Relative Strength Index (RSI) and exponential moving average (EMA) indicators to determine buy and sell signals. Here's a breakdown of what the strategy does:
It calculates the RSI and EMA indicators for the given timeframe. In the populate_buy_trend() function:
It identifies a buy signal when the RSI crosses above 15.
It checks if the candle's low price is above the EMA.
It ensures that the candle has volume (for backtesting purposes).
It sets the 'buy' column to 1 for the corresponding buy signals. In the populate_sell_trend() function:
It identifies a sell signal when the RSI crosses above 85 or the price is below the trend EMA. It sets the 'sell' column to 1 for the corresponding sell signals. The strategy aims to buy when the RSI is oversold (crosses above 15) and the price is above the EMA, and sell when the RSI is overbought (crosses above 85) or the price is below the EMA. It uses the RSI and EMA indicators to identify potential trends and reversals in the market. Please note that this is a brief description of the strategy. The strategy's performance and effectiveness should be evaluated through backtesting and further analysis.