thank you for the video. The exact strategy using rsi and support and resistance ,i have been coding since last week using MQL5 and results are wonderful too.
Hi, first thanks for your wonderfull video, you are truly inspiring me to get into pyton. Second, i have a question: could you please explain better the use of the rsi to define the trend? Im asking because everytime i look at the chart the rsi is always under 45 when approaching a support and over 55 when on the opposite side, i dont understand how to use it
Hi, there are different ways to use the RSI and so many different variations, the safest for example is using RSI on the daily timeframe to EXIT trades, so when you have an opened Long trade and RSI (length 2 or 3) crosses above 90% you can close the trade, and in the opposite way it also works for RSI below 10%. for trends detection you can confirm a trend if the last x RSI values (x can be last 10 candles for example) is above 55 then the price is most probably in an uptrend, opposite if last 10 RSI values are below 45 then we have down momentum. These are just 2 examples, but in general RSI can't be used alone.
Thank you for your support, RSI can be used in so many different ways. For example to exit a trade, daily timeframe, long trades closed if 2 days RSI crosses above 90 and short positions closed if the 2 days RSI crosses below 10. For trend detection you can check if the last x candles RSI (x= 10 for example) are above 55 so it's an uptrend, in the opposite direction if the RSI is below 45 for the last 10 candles then we are probably in a downtrend. But in general RSI can't be used alone it's a small component of the strategy.
one more excellent video, both for traders and programmers. I have a question concerning the definition of the fractal (support/resistance) level. In real life you could not possible know if the 2-3-5 candles after the current candle will be higher or lower. Will you wait for those candles to close before taking a trade?
Hi Vassili, thank you. Yes in real world trading we need to shift the computation 3 or 4 candles back, so we stop our indicator at (current_candle - 4) so we don't look into future candles.
Very good stuff. Been watching you for a while before i took a break on coding and trying to come back :D Are you doing general backtesting on large scale data on these codes? And another question are these resistance and support levels get stored or do you calculate them for each candle in a loop individually? If you store them, when do you decide when a level is not resistance or support any more? Also support and resistance can appear in different zones between different timeframes. Do you have any idea about how can we handle these stuff? Keep up the good work!!!
Hi thank you for your support. I don't store support and resistance I want only to keep the most recent since the market might change with time. For multi-timeframe levels, it's simple you just have to increase the n1 n2 variables (candles before and after) and this will give you the support resistance levels of higher timeframes as well.
hi sir, good morning , i had test this code for other shares but then i wouldn't got the signals i.e.0 but i was getting the support and resistance. can you help me for this
you have excellent control. thank you for sharing your knowledge with us. I have a small request please. how can you make a neural for binary options please? I will be happy to see that.. thank you 🙏🙏❤️ be blessed
Hi thank you for your support! Honestly neural networks are not impressive for trading and even less for binary options where it's harder to guess the outcome. Normal trading is easier I find since you can manage a trade after it's opened.
@@CodeTradingCafe thank you for the answer, it's appreciated. you do not robot based strategies for binary options.? Do you have a contact telegram or channel telegram please Thank you so much. Continue to bless us with your awesome knowledge. Be healthy 🙏🙏❤️..
Hi, in my opinion no there is no look ahead we are only testing the past candles, this is why I included the "gap" variable. The "proof" is that sometimes the market goes against our signal so if we head a look ahead it wouldn't be this way, all our signals would be correct. ... but it's always good to check twice if you want to verify
It is look ahead since he's doing current candle + n2 steps in the future to identify the support/resistance so you have to be careful if you use that check only. Still I believe he's saved by the 3rd check in his algorithm which is verifying that at least 6 candles are contained by the support/resistance which means the support/resistance could have been identified in the 6 steps before.
Hi, thank you for your comment, I did something a bit similar in the past check if it's helpful for you ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Mxk8PP3vbuA.html
Great content, can you please do a video about Lorentzian Classification in python based on the tradingView's Machine Learning: Lorentzian Classification indicator
@@CodeTradingCafe I greatly appreciate it! This indicator is truly remarkable, especially when utilized alongside other indicators. I've been avidly following your informative video content. Thank you for sharing your expertise!
You just need to add an API call to get the candles say every hour, run the detection algo from the video, and maybe send yourself an automatic email reminder if the signal is there. It's a bit of work though. Check this video ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-WcfKaZL4vpA.html.
excellent video, congratulations, I would like to make my small contribution, if possible, another of the supports and resistances that can be added and that was not taken into account in the video, was the POC, defining the POC as: " the price at which the most trading volume has occurred. It is considered to be a level at which there is a significant amount of activity and thus it may act as a strong area of support or resistance." I leave a snippet of code that can help: def support_resistance(self, data, order=10, poc_bins=50): poc_price, prices, volumes = self.get_volume_profile(data, poc_bins) maxima = argrelextrema(data['close'].values, np.greater, order=order)[0] minima = argrelextrema(data['close'].values, np.less, order=order)[0] # Adjust support and resistance levels considering the POC maxima = [maxima, np.where(data['close'].values == poc_price)[0]] minima = [minima, np.where(data['close'].values == poc_price)[0]] return {'resistance': maxima, 'support': minima} def get_volume_profile(self, data, num_bins=50): price_bins, volume_profile = self.compute_volume_profile(data, num_bins) poc_price = volume_profile.idxmax().mid return poc_price, price_bins, volume_profile def compute_volume_profile(self, df, num_bins): price_bins = pd.cut(df['close'], bins=num_bins) volume_profile = df.groupby(price_bins)['volume'].sum() return price_bins, volume_profile
Hi, thank you for your contribution and the functions! I will keep these for another video on support and resistance, your idea is actually interesting including volume to assess the importance of support and resistance levels. Good luck!
