Stock Analysis With Moving Averages Crossover Strategy On Python
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The moving average is a technical indicator that helps to get the price trends. it helps to filter out noise from random short term price fluctuation. Technical traders find buy&sell signal when these moving averages cross each other. There are two types of averages - Simple Moving Average Exponential Moving Average These two do not have a major difference but the only difference they have is how they are calculated and what data is used in the calculation. SMA calculates the average price data whereas EMA gives more weight to current data. So if Moving Averages helps in understanding the price fluctuation and one can get buy&sell signal seeing the crossover of the moving averages then we should try to make a python program that identifies the crossover automatically and gives the indicator to buy and sell. The program which is listed below is not 100% accurate, its just for analysis purposes. You can use it and get an idea about how moving average ...