Mastering Financial Pattern Recognition: Finding and Back-Testing Candlestick Patterns with Python

Description

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 back-test the profitability of candlestick patterns. 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 book, 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 back-testing 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