The Supertrend strategy is a trading strategy that aims to identify potential buying and selling opportunities in the market. Here's a brief description of what the strategy does:
In the populate_indicators method:
The strategy calculates additional indicators such as the average price (ohlc4), the average of high, low, and close prices (hlc3), and the average of high and low prices (hl2). It also calculates the Average True Range (atr) and the Stop and Reverse (sar) values.
In the populate_buy_trend method:
The strategy determines the conditions for a buy signal based on the specified parameters.
If the buy method is set to 'supertrend' or 'both', it checks if the buy price is greater than the supertrend value.
If the buy method is set to 'sar' or 'both', it checks if the buy price is greater than the SAR value. Additionally, it checks if the volume is greater than 0. If the conditions are met, a 'buy' signal is generated. In the populate_sell_trend method:
The strategy determines the conditions for a sell signal based on the specified parameters. If the sell method is set to 'supertrend' or 'both', it checks if the sell price is less than the supertrend value. If the sell method is set to 'sar' or 'both', it checks if the sell price is less than the SAR value. Additionally, it checks if the volume is greater than 0. If the conditions are met, a 'sell' signal is generated. The code snippets at the end of the script show additional logic for buy and sell timeout override based on price drift. If the current price deviates significantly from the order price, it returns True, indicating a timeout override for the respective buy or sell order. Overall, the Supertrend strategy calculates various indicators, sets conditions for buying and selling based on those indicators, and includes an additional timeout override based on price drift.