Examples
Here are some example applications of the indicator at work, giving buy and sell signals:
Here are some example applications of the indicator at work, giving buy and sell signals:
I learnt Algorithmic Trading from the NPTEL course Algorithmic Trading and Trading View.
The first step is to detect the current trend, i.e., bullish or bearish or sideways market. Buy signals will always be generated at the bottom of a bearish trend and sell signals at the peak of a bullish trend.
Naturally, the bottom of a bearish trend and peak of a bullish trend is when the trend reverses. To detect trend reversal, I used a modified version of RSI.