Using Exponential Smoothing in Algorithmic Trading

Trading board

Smoothing or averaging is a form of noise reduction and traders use to get a clearer picture on the trend or on extreme moves. The Stochastic Oscillator is known to have a signal line called the %D where a simple moving average is applied to the Stochastic formula so that it smoothes it out. In this article, we will create a Stochastic Oscillator entirely made out of exponential moving averages.

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The Pendulum Indicator for Range Trading – a Python study

Developing & Back-testing a New Indicator Using Range and Volatility. Contrarian indicators are numerous and there are unlimited ways to construct such indicators. The issue is profitability, consistency, and signal frequency. The first one is obviously related to an indicator that provides quality signals around market inflection points. It can never be accurate but if on average the good signals are slightly more than the bad ones, then with proper risk management, a good trading system can be created.

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A simple technique to Enhance Trading Decisions

Exploiting Lookback Periods to Have a Wider Look at Momentum. The famous Relative Strength Index is used commonly by retail and institutional traders to understand where do we stand momentum-wise. The choice between lookback period makes the task even more difficult and longer. Which one is better? We do not have to answer that question as we can develop a solution that gives us multiple answers as we will see in the article.

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Statistical Analysis on Technical Indicators. Taking Trading to a Higher Level.

Trading Chart

We tend to use technical indicators as they come and follow the already established rules and conditions. However, we forget that we have tools and methods to analyze any type of time series that comes across our way. It is true that technical indicators are price-derived but that should not stop us from analyzing them for patterns and any statistical anomalies that we may encounter and use in our trading framework. In this article…

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The Triangular Moving Average: Another way to find Support & Resistance Levels

Moving averages are a great way to provide support and resistance levels among other uses. There are many types of moving averages and in this article, we will discuss the Triangular Moving Average and some strategies revolving around it. For more on other types of moving averages, feel free to check the below article…

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