Название: Mastering Financial Pattern Recognition: Finding and Back-Testing Candlestick Patterns with Python (Second Early Release)
Автор: Sofien Kaabar
Издательство: O’Reilly Media, Inc.
Год: 2022-08-25
Страниц: 366
Язык: английский
Формат: epub (true), mobi
Размер: 10.3 MB

Candlesticks have become a key component of platforms and charting programs for financial trading. With these charts, traders can learn underlying patterns for interpreting price action history and forecasts. This A-Z guide shows portfolio managers, quants, strategists, and analysts how to use Python to recognize, scan, trade, and backtest the profitability of candlestick patterns.

Pattern recognition and detection is a skill that is mastered by machines better than humans due to their objectivity and therefore, I have dedicated the first chapters of the book to creating the structure of a candlestick pattern recognition algorithm before moving to the later chapters which dig deep with patterns and strategies. This means that the first skill you will learn is how to automate the data import process in Python.

Financial author, trading consultant, and institutional market strategist Sofien Kaabar shows you how to create a candlestick scanner and indicator so you can compare the profitability of these patterns. With this hands-on guide, you'll also explore a new type of charting system similar to candlesticks, as well as new patterns that have never been presented before.

With this book, you will:

Create and understand the conditions required for classic and modern candlestick patterns
Learn the market psychology behind them
Use a framework to learn how backtesting trading strategies are conducted
Explore different charting systems and understand their limitations
Import OHLC historical FX data in Python in different time frames
Use algorithms to scan for and reproduce patterns
Learn a pattern's potential by evaluating its profitability and predictability

Target Audience:
This book is suited for aspiring students, academics, curious minds, and finance practitioners who are interested in candlestick pattern recognition and its applications in finance using Python but also in developing strategies and technical indicators. The book makes the assumption that the reader has a basic background knowledge in both Python programming (professional Python users will find the code very straightforward) and in financial trading. I take a detailed and simple approach that focuses on the key concepts so that you understand the purpose and the know-how of every idea.