This repository includes a range of methodologies that can be used for trading implementations as well as data analysis. The list will be updated from time to time. All the methodologies included will be written in full detail (or as detailed as it possibly can be) to avoid errors or confusion from the packages. This repository should mainly be used for educational purposes as its real market performance should be tested and applied to the user's own intent.
- Gradient Descent for Word Embeddings (Forebinus Norm)
- Gradient Descent for Linear Regression
- Gradient Descent for Logistic Regression
- K-Nearest Neighbour (Cosine Similarity, Euclidean Distance)
- Cosine Similarity
- Euclidean Distance
- Hash Table
- Naive Bayes Classifier
- Principal Component Analysis
- Bearish Flag Chart Pattern & Bullish Flag Chart Pattern
- Double Bottom Chart Pattern & Double Top Chart Pattern
- Elliot Wave Chart Pattern
- Head And Shoulders Chart Pattern
- Inverse Head And Shoulders Chart Pattern
- Bearish Pennant Chart Pattern & Bullish Pennant Chart Pattern
- Rectangle Chart Pattern & Triangle Chart Pattern
- Triple Bottom Chart Pattern & Triple Top Chart Pattern
- Falling Wedge Chart Pattern and Rising Wedge Chart Pattern
- Abandoned Baby (Bearish & Bullish)
- Dark Cloud Cover - Bearish
- Doji
- Doji Star (Bearish & Bullish)
- Downside Tasuki Gap - Bearish
- Dragonfly Doji - Bullish
- Engulfing (Bearish & Bullish)
- Evening Doji Star - Bearish
- Evening Star - Bearish
- Falling Three Methods - Bearish
- Falling Window - Bearish
- Gravestone Doji - Bearish
- Hammer - Bullish
- Hanging Man - Bearish
- Harami (Bearish & Bullish)
- Harami Cross (Bearish & Bullish)
- Inverted Hammer - Bullish
- Kicking (Bearish & Bullish)
- Long Lower Shadow - Bearish
- Long Upper Shadow - Bullish
- Marubozu Black - Bearish
- Marubozu White - Bullish
- Morning Doji Star - Bullish
- Morning Star - Bullish
- On Neck - Bearish
- Piercing - Bullish
- Rising Three Methods - Bullish
- Rising Window - Bullish
- Shooting Star - Bearish
- Spinning Top Black
- Spinning Top White
- Three Black Crows - Bearish
- Three White Soldiers - Bullish
- Tri-Star (Bearish & Bullish)
- Tweezer Bottom - Bullish
- Tweezer Top - Bearish
- Upside Tasuki Gap - Bullish
- Build Engulfing (Bearish & Bullish) and Doji
- Use Engulfing to open the position and Doji to close
- Test out 4h hours first
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False Signals in Ranging Markets: In sideways or ranging markets, engulfing patterns may frequently appear but can provide misleading signals as the market lacks a clear trend.
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Context Dependency: The reliability of an engulfing pattern significantly depends on the market context and preceding price action. Without the right context, such as a strong preceding trend, the pattern may not be a reliable indicator.
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Lack of Precision: The engulfing pattern doesn't provide precise entry or exit points. It indicates a potential reversal, but the exact timing can be ambiguous, requiring further confirmation from other indicators or analysis methods.
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Subjectivity in Identification: Identifying an engulfing pattern can sometimes be subjective. Different traders might interpret the pattern differently, leading to inconsistent application.
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Delay in Confirmation: Engulfing patterns require the completion of two candlesticks for confirmation. This delay can mean missing out on a portion of the price move, especially in fast-moving markets.
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Vulnerability to Economic News and Events: In forex trading, major economic news and events can dramatically impact currency values, rendering technical patterns like engulfing indicators less effective or entirely irrelevant during such times.
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Size and Proportion Issues: The size and proportion of the candles in the engulfing pattern can vary, affecting its reliability. Larger engulfing candles are generally seen as more significant, but this can also depend on the market and the asset.
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Need for Complementary Indicators: Engulfing patterns are often used with other indicators (like moving averages, RSI, etc.) for better accuracy. Relying solely on engulfing patterns can increase the risk of false signals.