Classical technical trading setups
In Chapter 7, Technical Analysis and Its Implementation in Python, we considered a number of classical technical analysis indicators, such as the RSI, a stochastic oscillator, moving averages, and Bollinger bands. We saw that each of these indicators is able to bring into focus a certain property of the price time series: for example, Bollinger bands are a volatility indicator, and moving averages are digital filters that remove higher frequencies from the price data. However, we didn’t consider any classical trading setup with any of these indicators. Why?
The answer to this question is twofold. First, these setups can be found in literally any book or internet publication about technical analysis. You can start with an overview of technical indicators at Investopedia (https://www.investopedia.com/terms/t/technicalindicator.asp) and then follow the links to articles on specific indicators to see how they are supposed to be used to generate...
