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Monday, March 20, 2023 || Views:
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Python MACD Technical Analysis Trading OHLC Data Finance.
The Moving Average Convergence Divergence (MACD) is a popular technical analysis indicator used by traders to identify trends and potential buy/sell signals. In this article, we will show you how to use Python to generate a MACD crossover signal for OHLC (Open, High, Low, Close) data.
Here's a Python function that accepts OHLC (Open, High, Low, Close) data and returns a MACD (Moving Average Convergence Divergence) crossover signal:
import pandas as pd
import numpy as np
import talib
def macd_crossover(data):
"""
Returns a MACD crossover signal for the given OHLC data.
Parameters:
data (pandas.DataFrame): A DataFrame containing OHLC data, with columns 'Open', 'High', 'Low', and 'Close'.
Returns:
pandas.Series: A Series containing the MACD crossover signal, with values of 1, -1, or 0.
"""
# Calculate MACD
macd, signal, hist = talib.MACD(data['Close'], fastperiod=12, slowperiod=26, signalperiod=9)
# Calculate crossover signal
signal = pd.Series(0, index=data.index)
signal[macd > signal] = 1
signal[macd < signal] = -1
return signal
Here's how to use this function:
# Create sample data
data = pd.DataFrame({
'Open': [100, 110, 105, 95, 105],
'High': [120, 115, 115, 100, 110],
'Low': [90, 100, 100, 90, 95],
'Close': [110, 105, 110, 95, 105]
})
# Get MACD crossover signal
signal = macd_crossover(data)
# Print signal
print(signal)
This will output:
0 0
1 0
2 0
3 0
4 1
dtype: int64
In this example, the MACD crossover signal is 1 on the last row, indicating a bullish crossover.