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Author: Admin | 2025-04-28
How I Coded Technical Indicators for BitcoinUse Python to Create Bitcoin Technical IndicatorsPhoto by Aleksi Räisä on UnsplashWhen it comes to trading, there are a variety of techniques that can be applied to find the most optimum time to invest. Some could look at the financials and see if there is value behind the curtains. Others might look to the daily news and observe how it may influence the current price. Another group might actually look at the price movements in the past and try to discern possible patterns to determine future price movements.Technical Analysis concerns that group that observes past prices and movements to predict future prices. By utilizing technical analysis, we can derive many different patterns just from using an element’s price history. Mathematical formulas that have been developed throughout the past half century have been used to derive novel values just from a stock’s price and volume history. These formula’s returning values are what we call Technical Indicators.When trading a resource such as Bitcoin, there is not much to analyze besides its price history and volume. If you take a look at its Yahoo Finance page and compare it to any random stock’s page, you can see that it is missing some financial information. This is because Bitcoin is not a company but a currency. There are no Balance Sheets, Profit and Loss Statements, etcetera when it comes to Bitcoin.With no fundamental information to go on, we can resort to utilizing Technical Indicators when trading Bitcoin. If we wanted to add more variables to a trading algorithm or a machine learning forecasting model, then we could introduce more features (technical indicators) to the dataset instead of the usual price and volume history. This tactic may help in forecasting future prices when utilizing a machine learning model.Next up,
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