Market Profile and Support/Resistance Levels With Python

neurotrader · Advanced ·🌐 Frontend Engineering ·3y ago

About this lesson

In this video I show python code to create the market profile with a kernel density estimate (a.k.a Parzen window). We find and filter peaks of the market profile using prominence to extract support and resistance levels. The code has customizable time weighting to allow for quicker identification of the levels for real time use. I show a simple trend following strategy that buys on the penetration of the levels with decent performance. This tool can be used to implement algorithmic trading strategies that require current support/resistance levels. Links Full Code found in mp_support_resist.py : https://github.com/neurotrader888/TechnicalAnalysisAutomation Prominence Scipy: https://docs.scipy.org/doc/scipy/reference/generated/scipy.signal.peak_prominences.html#scipy.signal.peak_prominences Prominence Wikipedia: https://en.wikipedia.org/wiki/Topographic_prominence Parzen Window: https://en.wikipedia.org/wiki/Kernel_density_estimation The content covered on this channel is NOT to be considered as any financial or investment advice. Past results are not necessarily indicative of future results. This content is purely for education/entertainment.

Original Description

In this video I show python code to create the market profile with a kernel density estimate (a.k.a Parzen window). We find and filter peaks of the market profile using prominence to extract support and resistance levels. The code has customizable time weighting to allow for quicker identification of the levels for real time use. I show a simple trend following strategy that buys on the penetration of the levels with decent performance. This tool can be used to implement algorithmic trading strategies that require current support/resistance levels. Links Full Code found in mp_support_resist.py : https://github.com/neurotrader888/TechnicalAnalysisAutomation Prominence Scipy: https://docs.scipy.org/doc/scipy/reference/generated/scipy.signal.peak_prominences.html#scipy.signal.peak_prominences Prominence Wikipedia: https://en.wikipedia.org/wiki/Topographic_prominence Parzen Window: https://en.wikipedia.org/wiki/Kernel_density_estimation The content covered on this channel is NOT to be considered as any financial or investment advice. Past results are not necessarily indicative of future results. This content is purely for education/entertainment.
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