The SqueezeMomentum strategy is a trading strategy that utilizes various technical indicators to identify potential buy and sell signals in the market. Here is a breakdown of what the strategy does:
The strategy populates several technical indicators on the given DataFrame, including SMA (Simple Moving Average), EMA (Exponential Moving Average), TEMA (Triple Exponential Moving Average), MACD (Moving Average Convergence Divergence), MFI (Money Flow Index), ADX (Average Directional Index), and others. It calculates Bollinger Bands and Keltner Channels, which are used to determine the upper and lower boundaries of price volatility.
The strategy calculates the upper and lower boundaries for Donchian Channels, which represent the highest and lowest prices over a specified period.
It calculates Fibonacci levels based on the Donchian Channels.
The strategy calculates the squeeze conditions by comparing the Bollinger Bands with the Keltner Channels. It calculates the delta and value of the squeeze indicator, which represents the difference between the closing price and the average of Donchian Channels and TEMA. The strategy calculates the angle and acceleration of the squeeze indicator. The strategy determines the entry trend based on various conditions, including ADX, MFI, EMA, MACD, Bollinger Bands, and the squeeze indicator. It determines the exit trend based on conditions such as SAR (Stop and Reverse), Donchian Channels, and the squeeze indicator. The strategy includes additional conditions for selling, such as Fisher RSI and SAR. Overall, the SqueezeMomentum strategy aims to identify potential buying and selling opportunities by analyzing multiple technical indicators and squeeze conditions in the market.