Increasing Stock Returns by Combining Williams %R and MACD in Python
A detailed case study on using python to combine two technical indicators and create a killer trading strategy
Technical indicators are the new-common in the trading arena and it is worth the time to study those. Though it has greater potential in analyzing the market, one should definitely consider its drawbacks too. There aren’t many but one notable snag is its nature of revealing false signals which can lead to catastrophic results when followed. It is tough to avoid such signals but are not inevitable and one of the best ways of doing so is to combine two technical indicators where one indicator acts as a filter that classifies the authentic signals from the false ones. That’s exactly what we’re going to do today.
In this article, we are going to combine two powerful technical indicators which are Williams %R and Moving Average Convergence/Divergence (MACD) to create a killer trading strategy that eradicates false trading signals as much as possible and substantially improves the investment returns. Without further ado, let’s dive into the article.
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