Combining Historical Data with Technical Analysis
Technical analysis primarily focuses on price and volume data. This simplification allows analysts to filter out what they consider 'noise' – factors such as economic reports, news events, or company fundamentals – to concentrate solely on how prices have moved in the past, under the assumption that this will give insight into how prices will move in the future. Many believe that historical price movements and patterns tend to repeat themselves over time.
We will write a Python script to demonstrate how to load the historical data available on our site into a Pandas DataFrame, and then add columns of Technical Analysis. We will be using the
TA-LIB library, which was originally written in C++ but has since been converted to Python. This python package has over 200+ technical analysis indicators.
The Code
The code will work on any exchange on our site and available cryptocurrency pairs. The symbol relies on it being in this format: "BTC/USDT" (includes the slash). We will create columns for a SMA 20 (simple period moving average with 20 day window), an relative strength index (RSI) indicator with 14 day window, Bollinger bands (upper, middle and lower), and MACD, MACDSignal, and MACDHistogram. The script will then write a CSV file with the technical analysis indicators added to it. We also added comments to every line of code and are available for you to reach out to if you have any questions via email. Please modify as you wish or fit your purpose.
Plus+ membership required
Create a Plus+ account to view the live codebase.
This article has a fully working, notebook-ready code block. Sign up for Plus+ to access it and the rest of the 20+ premium articles.
Subscribe to Plus+
Browse Plus+ articles
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we
believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Author does not own the any crypto currency discussed. The information
and content are subject to change without notice. CryptoDataDownload and its affiliates do not provide investment, tax, legal or accounting advice.
This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal,
accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by CryptoDataDownload is not an
endorsement whatsoever. CryptoDataDownload was not compensated to submit this article. Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.
THE PERFORMANCE OF TRADING SYSTEMS IS BASED ON THE USE OF COMPUTERIZED SYSTEM LOGIC. IT IS HYPOTHETICAL.
PLEASE NOTE THE FOLLOWING DISCLAIMER.
CFTC RULE 4.41: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL
PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN
EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS,
SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE
DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY
TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. U.S. GOVERNMENT REQUIRED DISCLAIMER: COMMODITY FUTURES
TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK.
YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS.
DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES
OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES
SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT
NECESSARILY INDICATIVE OF FUTURE RESULTS.