Creating a Simple Technical Indicator in Python
Creating a Momentum-Based Indicator to Trade the Market.
Technical indicators can be found everywhere and some traders prefer to create their own so that they reflect their risk and return appetite as well as their preferred market analysis methods. In this article, we will try to create a simple contrarian indicator and then back-test it. The key learning outcome is not finding a profitable indicator but rather the building process and the way to think about the trading rules.
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The Concept of Momentum
When we say that the market has momentum, we refer to the persistence property of the prices going…
