The "EMACross" strategy is a trading strategy that uses exponential moving averages (EMAs) to generate buy and sell signals. Here's a breakdown of what the strategy does:
The strategy starts by populating the given DataFrame with various technical analysis (TA) indicators. These indicators help analyze market data and identify potential trading opportunities.
The strategy calculates two types of EMAs: short-term EMAs and long-term EMAs.
In the "populate_buy_trend" function, the strategy determines the buy signal based on the crossover of the short-term EMA and the long-term EMA.
If the short-term EMA crosses above the long-term EMA and the volume is greater than 0, a buy signal is generated. Similarly, in the "populate_sell_trend" function, the strategy determines the sell signal based on the crossover of the long-term EMA and the short-term EMA. If the long-term EMA crosses above the short-term EMA and the volume is greater than 0, a sell signal is generated. The strategy modifies the DataFrame by adding a "buy" column and a "sell" column, indicating the presence of a buy or sell signal at each data point. Overall, the strategy uses EMAs and volume to identify potential buying and selling opportunities in the market.