Automated Support and Resistance Detection in PYTHON
ฝัง
- เผยแพร่เมื่อ 31 พ.ค. 2024
- This video describes an algorithm to detect support and resistance levels in python language.
🍓 If you want to follow structured courses with more details and practice exercises check my "About" page for Discount Coupons on my Udemy courses covering: Python basics, Object Oriented Programming and Data Analysis with NumPy and Pandas, ... more courses are on the way drop me a message if you have a particular interesting topic! Good luck!
The code is provided for download from the link:
drive.google.com/file/d/17RoN...
Data file used is available:
drive.google.com/file/d/1qnYy...
00:00 Introduction To Support And Resistance Levels
04:02 Python Code Detecting Support And Resistance Levels
11:40 Plotting Support And Resistance Levels In Python
17:00 Merging Support And Resistance Levels In Python
#trading #forex #python
I was the one who asked for this, thank you man!
Actually thank you!
@@CodeTradingCafe thanks to both of you 🤩🙏
@@devsunny10 good luck with more python tricks 🙂
I'm coding in C#, still, these videos are of great help
You have shown us the way.. 🙏
Thank you to both
Your videos are so clear and easy to understand. One of the best out there.
Glad you like them! Thank you for your support!
Amazing content, not sure how I did not come across your channel. Its has opened my mind as well on the possibilities. Thank you!
Raj thank you for your support, good luck!
This was so helpful and useful! Thank you!!! need to check out your other videos now
Thank you for your support! and good luck with your algos.
And for pivot points, there will be a good video))) If you find divergence convergence on the RSI indicator, this is a signal for huge movements
I thought about how to implement my trading strategy that I use by hands to Algo and this video helped me to start!!!
Thank you very much! Now I have the base and hope I can find more good stuff from you!
Hi thank you for your comment, with time and patience you can get there and have a nice code just stay on the safe side and always test on demo first
Thanks... very well explained
Thank you for your appreciation
Very good approach. I am going to use it for my strategy. Thank you.
Thanks, I think it will be good to combine it with engulfing candles... I will try to make a video like this
Interesting. How do l get in touch to to discuss more on the topic
We can communicate by email, I am preparing a video about this the results are good!
Thank you for your video.
Thank you for your support and gool luck!
Thanks for the content brother.
Thank you for your support!
An other idea could be to search for minimum value / maximum value in a range excluding the extremities (first and last value). Than you could shift the range and clean up the close lines, or better not to plot lines, but rather to fill the space between the close lines. It is not important to make difference between support and resistance by color, because support get resistance and resistance get support, this is why we are looking for them.
Hi thank you for your input, yes actually I agree that no need to clean up close lines it's also good to define zones of support and resistance. Many different ways of doing this.
explain more I'm very interested in your idea.
You earned a subscriber!
...with a nice nickname 🙂
Great job 👏👏👏
Thanks great you liked it
Quite functional ! I may missed the part but I guess one definition of S/R levels is that it has to touch at least two (local) lows/highs. If applied, such definition would efficiently reduce the number of (irrelevant) lines. Any way god job! Hope you do a similar video on channels and triangles. Thanks
Hey, thank you for sharing, good idea to filter irrelevant lines, I have videos on triangles and head and shoulders patterns in this playlist. Good luck!
@@CodeTradingCafe i need this where i can find?
you have very strong videos, thank you very much. you have accumulated many formulas and strategies, why is there no pattern finder ?? it is very good to bring your work to a logical and complete end. systematize and recognize all well-known figures and patterns on candlestick charts
Thank you for the compliment it's encouraging. You are right I think I should start putting a complete system combining different methods together, I was postponing this because it's easier to work on one indicator at a time, mounting a system together requires time and effort that I couldn't gather so far... Still when it's done it will be on this Channel
Thank you very much
Glad you like it, good luck
Thanks for sharing your thought on how to find support and resistance levels. What are your thoughts on giving more weight for higher timeframe support & resistance levels, i.e. monthly s/r would have more weight than weekly vs daily vs 4H? This could help reduce the number of levels and give s/r levels different strengths.
Hi, there are 2 ways of doing it, one you mentioned relies on different timeframes, the other one is counting the number of times the prices reverts on the same level and within the same timeframe. But I think using different timeframes is better like you mentioned.
amazing 😃
Thank you
great informative video
Thanks a lot for your support!
@@CodeTradingCafe how to contact you
Hi, my email is in the about section of this channel
An idea for you:
- scan values with 3 points window, if the middle point is between 2 other points - you can remove the middle point, repeat until there are no changes, in the end you'll have tops and bottoms
- group tops: find the closest two lines and group them, repeat until you'll have an acceptable number of lines
- do the same for bottoms to find supports
Thanks, how do you choose the width of your window? Or the distance between the 3 points
@@CodeTradingCafe 3 points next to each other. If the middle low, for example, if between two other lows - this point is useless for us for finding supports, so we can remove it. Just repeat until you have few points.
@@OleksandrPolyeno ok I see your point I think it would lead to the same result of the video if I am not mistaken
Great video! I think when merging the lines it could be better to first normalize the price values of the df and only then set the threshold for merging, since some stocks/instruments are traded in 10's of thousands and some in much lower prices, 0.005 won't always do it
Thank you, you are right actually most of my videos are currency specific, normalisation is better for a general function... will keep it in mind for the future
@@CodeTradingCafe Could also be a good idea to just use a multiple of ATR (maybe ATR*0.1 or something like that)
@@BOSprodz yes this I am using for SL values and consequently the TP as well. ATR is a good parameter to include dynamic expressions into the strategy.
Thanks alot for great content ! But 14:13 , i am trying to show dateTime instead of index go.Candlestick(x=dfpl.dateTime, my candlestick graph is disappear , and it is show from 1970-2020. Btw, my sr[list] is updated from row,price to dateTime,price, still it does not help! Could you please advice ?
Hi thank you for your comment, you have to make sure that the format of the date is understandable by pandas and also convert the column to datetime type using to_datetime function
@@CodeTradingCafe it works bro ! Thanks alot !
Thank you! Very useful info. Is it possible to do another one on supply and demand zones? Its a bit more complicated than support and resistance but related to it.
Hi, well everything is doable, only time is an issue so I might be late, Thanks a lot for sharing, it really broadens the content of this channel.
thumbs up!
Thanks I am glad you like it
maybe finding correlation and trying different timeframes to see what price levels are more statistically significant. Or which price levels have a high likelyhood of acting as support or resistance.
That would be interesting I agree, checking which levels are statistically relevant, provided these don't change across the years (which I doubt)
Would be really nice to see all your samples in a Github repo! Thanks a lot.
Thank you many asked for this, I created the account but didn't have time to publish codes there yet, my workload is killing me at the moment
awesome video, thanks! Is there any way to be able to detect patterns of "M" and "W" at the ends? I'm having a hard time finding defined patterns because it gives me false positive results when detecting the second formation of the "M" and "W" :/, maybe it's not possible
Thank you check my videos on triangle pattern detection and on head and shoulders pattern, these might be helpful. Good luck!
Very nice video. I did something similar too but got stuck with too many RS lines and potential prices and still tweaking it. I wanted to check whether your code is taking care of diagonal lines covers various RS levels?
Thank you. These are related videos that might be of help:
th-cam.com/video/xky3ZiCsEDs/w-d-xo.html
th-cam.com/video/MkecdbFPmFY/w-d-xo.html
th-cam.com/video/b5m7BZAHysk/w-d-xo.html
This is really great and helpful 👏👍 Can you also cover Pivot Points , Monthly, Weekly and daily please ? Then you combine with Swing Trading with Martingale strategy. 😀 Thank you.
Thank you for your comment, weekly pivot points and resistance/support are important, you can apply the same code from this video to any timeframe.
This is awesome man, thank you man. Do you have a tutorial on pullback trading or double tops using python
Thank you, not exactly double tops but I did something regarding triangle patterns and head and shoulders, check this one among others th-cam.com/video/WVNB_6JRbl0/w-d-xo.html
Hi I keep getting the error "FileNotFoundError Traceback (most recent call last)" where do you store the csv file ?
It has to be in the same folder as the Jupyter notebook file
@@CodeTradingCafe It is still not wroking tho. Im doing it on mac maybe thats why ?
Not sure, first check if the filename is all good letter by letter, if all is well try including the path of the file within the read_csv function like "c:/folder/folder2/file.csv""
Thanks for the video, is there a way to detect this kind of patterns: Ascending triangle, Descending triangle, Symmetrical triangle, Double top, Double bottom, Head and shoulders, Rounding bottom, Cup and handle
Hi, thank you for your support. Yes there is a way I am preparing a video for these patterns since it has been requested many times, however it's not one program that does all the patterns detection at once, triangles have their Algorithm, head and shoulders in a separate Algorithm and so on... Kind of challenging
@@CodeTradingCafe thanks for the tips can’t wait for the video 😃
Great content. I have watched your other videos as well on channel detection, triangular pattern detection etc they were very useful to me. I have a query: I wanted to use some part of triangular pattern detection code in detecting horizontal support and resistance lines. Kindly let me know, if that's possible!
In triangular pattern detection, we used xxmax.size and xxmin.size to detect more valid lines such that they pass through atleast 3 maximas and minimas respectively. Also we had rmax, rmin conditions applied to detect more appropriate lines and lastly we had slmax and slmin conditions to detect the right shape of triangular pattern. But with linear regression in triangular pattern detection, I saw that we could only draw two lines at once.
So my question is:
Can we use linear regression in detecting horizontal support and resistance lines? But I don't want only two lines, but all the possible horizontal lines should be detected.
With current code of horizontal support and resistance detection, we sometimes detect those horizonal lines too which are passing only through 2 maximas/minimas. These lines are not the major ones for the timeframe and strategy I use. To detect major ones, I thought I can use linear regression and then put the xxmax.size and xxmin.size conditions to detect major support and resistances only. If linear regression can be used to detect all the horizontal support and resistance lines, then I can add rmax and rmin conditions to detect more relevant lines and keep slmax and slmix close to zero to detect horizontal lines. Is that possible?
OR
Is there any other way to find the number of times the prices have reverted/touched on the same level ?
Hi, thank you for your comment, you got it right the required number of minimas and maximas can be changed to detect lines but for horizontal support and resistance there is no need to do this, we can simply do as we did in this video and to apply a weight/strength to each level we can count the number of times the price bounced on in the last 40-60... Candles I hope this helps
@@CodeTradingCafe Okay, I'll do that. Thank you!
I'm sure the channels would be of great help in finding the levels Support and Resistance ! Or Bollinger bands what is your opinion ??
Definitely yes, we can look at the smoothened slopes of the Bbands lines and try to detect slope changes from negative to positive or the opposite, I think it's an idea, but we'd never know what it's worth until we try it.
Channels are also good to detect reversal levels but they are numerically more challenging to code (I will add this to my list)
Very nice video and clear explanation, Been developing a similar approach to find support and resistance lines. Can you please guide me to find the lines which touches atleast two low or high points?Thanks in advance.
Thank you for your support, you might be interested in tomorrow's video it's about 3 points support/resistance, and breakout pattern.
Thank you, would be waiting
hallo,
can you help me?
how to import minutes, if my candle 1 minutes, not 1 day?
You can retrieve data from the ducascopy web interface, I included a small tutorial in this video th-cam.com/video/XK2IU5vRJr0/w-d-xo.html
Please dear, how do we go about it since S&R is a Zone and not just a Horizontal line and it is dynamic also, how will it be detected especially in higher time frames?
Hi, in this algorithm, there is a part where the close SR levels are merged together so you might take this level plus or minus let's say few pips to define your zone, as for this being dynamic it's already taken into account because we only consider the most recent candles.
@@CodeTradingCafe Thank you so much, pls what about higher TF and LTF how do I manage it, I am just a beginner so I don't know much for now on programming,
@@chukwuemekao9610 same algorithm just load the timeframe data and modify how many backcandles you will consider
MY SUGGESTION TRY BACKTESTING WITH HARMONIC PATTERNS....... I'm multiple problems...your attempt will be appreciated
Identifying Pivot, support and resistance lines is very good idea. I tried run code to get the same output you found. But, when I tried I encountered the followings two areas:
AttributeError: 'DataFrame' object has no attribute 'low',
AttributeError: module 'plotly.graph_objs' has no attribute 'Candilestick'
How can you resolve these issues? Do you have specific code to resolve these issues? thanks.
Try printing the df see if the columns where loaded correctly, sometimes the file column is "Low" instead of "low" in this case modify the data file to "low" small L.
And there is a typo candilestick should be candlestick
Let me know if it works
i was asking can ve not put value in code it will automatically detect and put in chart is it possible i think our view in market are more good please reply?
The message is it possible i know 250 is support so can I not directly poot and it will take like support?
Yes you can definitely do it, it's actually easier if you insert your own values, ... you still need a strategy though.
Hi there, is there a way that i can confirm possible resistance and supports, for example if it touch the same level of resistance or support twice we can confirm its a valid point of resistance or support, I would love if u include it in the notebook, much thanks.
At the time I recorded the video, I wanted to include how many times the level was touched and assign this number as the strength of the resistance/support, this way we can filter these by strength, say for example I will only take into account support/resistance of level 3... and so on, I will try and think of another video including these details. (But it might be in few weeks, bare with me).
Well it's just an idea but if you decide to use the approach where you store your resistance and support levels in two different lists, you could iterate through those lists to find the duplicated values and assign them a note.
Hi, 🙏 very helpful videos... 👍
I need help to get solution,
Anyhow I need High & Low values of specific Timeframe candles of particular stock or indeces...? (NSE/BSE)
& I need that High-Low values data import in Excel sheet or in Google sheet...
Plz reply, Waiting for your valuable reply
Hi your can do this by checking the high low values like in this video then transfer to pandas dataframe and write to csv or Excel file using function to_csv()
@@CodeTradingCafe ok, but i need to retrieve this data daily for Nifty 50 or Nifty 100 or No. Of stocks list...
Then how to do this automated
Hi this can be done using yahoofinance package
@@CodeTradingCafe ok, but how . ?
I try but not get output, plz guide
Great job! Could you please write code to detect demand and supply zone and then only show fresh zone (which is not tested before?
Thanks again in advance.
Hi thank you for your support! I see your proposition is related to the video, do you have any more details? maybe a link where it's described?
3:39 - Interesting algorithm...
Thanks, glad you like it
thank you very much for your explanation, it was smooth and informative
I would like to ask you if it is possible to automate the resistant and support points in yahoo finance instead of plotly.graph_objects
Hi thank you for your comment, I'm not sure I understand correctly because these are 2 different tools, and plotly is just to visualize the results.
Can you make it for trend lines ?
You mean trend channels?
@@CodeTradingCafe yes trend channels , its bit hard so expecting it from you
Yes it's more challenging I will check it out, might take few weeks though
Hi, can you make a video on Price action trade, without using any indicator, using python coding is it possible, if so please make a video no one in TH-cam ever did this kind of algo trade, majority traders youtubers used moving average, so if you do unique video on Price action trading you are the best among them.
Hi, thank you for sharing, I have some videos on price action trading, let me know if the content is what you have in mind: th-cam.com/video/PfmxNxS4EYQ/w-d-xo.html
Good luck!
@@CodeTradingCafe Thanks for the reply, could you spare some time and think what I actually trying to convey you is, " Please do some video of live coding or recorded video on price action kind of algo trading using python, in that you should not use any indicator except RSI, MACD and price action Elliot or Wyckoff way in multi time frame method, is it possible for you, if so please make a video it is very demanding in market youtubers are eagerly waiting" thanks for you reading. hope you will deliver soon, bye
I want help please. Can I copy the code and put it in Pine Script Trading View?🔴🔴
Hi this is python so just copying the code will not work you will have to translate it into pine.
@@CodeTradingCafe How do I translate the code from Python to Pine?
Well you need someone who knows both languages, I personally don't code pine, you might be able to do it through ChatGPT walking the bot through step by step.
@@CodeTradingCafe I have a question and please reply, why do you make the code in Python and we as traders need the indicator to work inside the platform and for that we need Pine and not Python because Trading View no accepts Python and I will not benefit from the code if it is in Python
Hi, for automated trading and algorithmic trading I only use python I don't need any other platform (check this video th-cam.com/video/WcfKaZL4vpA/w-d-xo.html). But also one main reason I prefer python are the machine learning libraries that you can access and include in your trading, I am not sure other platforms offer neural networks and advanced tools like python. You can also dockerize your strategy deploy it on the cloud... the reasons are mainly technical.
Can you please make resistance and support with line chart. That would refine it much '!!!
Hi, I am not sure what you mean, what is line chart?
Is it like a chart with a simple line without the candles?
Upload cpr automation video
Hello sir how can I open it or use it
You can download python and jupyter notebook and experiment on it. Good luck
file is not available. maybe you can share a github link?
Hi thank you, I don't have GitHub for the moment but I tried both file links and they're working fine maybe try again check from your side
plotlist1 = [x[1] for x in sr if x[2]==1] # stores values support
plotlist2 = [x[1] for x in sr if x[2]==2] # stores values resistance
Hi can you please explain this peice of code more?
Hi, if x[2] is 1 or 2 we know that it's either a support or a Resistance respectively, so if it's a support we store the value of the level that is x[1] either in plotlist1 where I am saving all the support values or plotlist2 where I am saving all the Resistance values.
I hope this helps a bit
@@CodeTradingCafe thank you, but what is x[2) is it the previous 2 in the for loop?
@@SubhanSadad109 no, imagine a table of 2 dimensions columns and lines, in fact each x is a line of 3 elements x[0] x[1] and x[2] representing the different levels but to differentiate between support and resistance we give element x[2] values 1 and 2. Just imagine that each line or level is represented by 3 values of x
@@CodeTradingCafe ohh that makes sense thank you so much !
Glad I could help
Guys i don’t understand too good this algorithm. I want tgis algorithm works in pychar… help me plz!
Hi this algorithm can run on any python based environment, just download the jupyter notebook file and try it out.
you immediately found support and resistance on Fibonacci levels ??
Hi, actually Fibonacci are NOT involved here it's only support and resistance where we got price reversals.
@@CodeTradingCafe Yes, hello, thanks for the answers! But did you see the patterns by drawing lines ?? or did you not set yourself the goal of finding patterns for yours a very good new strategy ?
No I didn't check the patterns, I honestly don't believe in Fibonacci in finance, so I usually don't even think about it
Hi, please can u teach me how put orders in futures with ccxt un kucoin. I have a lote of backtestings, and I want to go test but i dont know how put orders. THX man ❤ 0:25 1:26
Hi thank you for your support! for putting orders you can try a demo/paper account and follow these instructions for testing: th-cam.com/video/WcfKaZL4vpA/w-d-xo.html
kindly also share how to use this in strategy ....
Hi I did videos using this in 2 different strategies... combined with candle patterns, the problem is I can't remember which videos are these 😂
@@CodeTradingCafe😅 even I sometime get mixed up with you notebooks....
I think it was scalping one... Ema and engulfing candle...
I will rearrange my playlist into more organized schema hopefully soon, it will be easier to find videos.
@@CodeTradingCafe thanks...
Actually I think it's this video we are looking for th-cam.com/video/y78S-aCwqEM/w-d-xo.html
Please I need help try to use this code but this line "If(df1.low[I]>df1.low[i-1]: return 0" is giving this error attribute have no df1.low
Hey you need to run the previous cells first.
I don't use Jupiter notebook, but am using pycharm
I will really appreciate if you can help fix this bug thanks
@@ojfidelis2854 it's difficult to guess because at mine it's working. The error says that the 'low' column doesn't exist in df, try and print df to see if the column is there and what's its name.