Candlestick Pattern Recognition with Python and TA-Lib

Oct 24, 2021 2 min read

Candlestick-Pattern-Recognition-with-Python-and-TA-Lib

Goal

Look at the S&P500 to try and get a better understanding of these candlestick patterns and how we can use them to find actionable ideas for trades programmatically.
Benefits doing this programmatically is that it saves us time.
Be able to detect these technical patterns using python.
Analyze the S&P500 for all the technical patterns.
Scanner for technical patterns
Web application

Example of Technical Patterns

Engulfing Pattern

DEMO

Example of getting data on a stock from a certain start date to end date
“data = yf.download(“SPY”, start=”2021-01-01″, end=”2021-10-22″)” YIELDS:

Output of data on dates that have and dont have the morningstar pattern, 0 for it doesnt have and 100 for it does.
“num = talib.CDLMORNINGSTAR(data Open, data High, data Low , data Close )”
If we print out “print(num[num !=0])” we see the dates that indicate a MorningStar pattern is detected

The date that our program has outputted is 2021-03-22
If we observe this date we can confirm the MorningStar Pattern has been detected

GitHub

Patterns Matplotlib

John was the first writer to have joined pythonawesome.com. He has since then inculcated very effective writing and reviewing culture at pythonawesome which rivals have found impossible to imitate.