Mastering Financial Pattern Recognition : Finding and Back-testing Candlestick Patterns With Python

Candlesticks have become a key component of platforms and charting programs for financial trading. With these charts, traders can learn underlying patterns for interpreting price action history and forecasts. This A-Z guide shows portfolio managers, quants, strategists, and analysts how to use Python to recognize, scan, trade, and back-test the profitability of candlestick patterns.

Financial author, trading consultant, and institutional market strategist Sofien Kaabar shows you how to create a candlestick scanner and indicator so you can compare the profitability of these patterns. With this hands-on book, you'll also explore a new type of charting system similar to candlesticks, as well as new patterns that have never been presented before.

With this book, you will:

• Create and understand the conditions required for classic and modern candlestick patterns
• Learn the market psychology behind them
• Use a framework to learn how back-testing trading strategies are conducted
• Explore different charting systems and understand their limitations
• Import OHLC historical FX data in Python in different time frames
• Use algorithms to scan for and reproduce patterns
• Learn a pattern's potential by evaluating its profitability and predictability

Sofien Kaabar is a financial author, trading consultant, and institutional market strategist specializing in the currencies market with a focus on Technical & Quantitative topics. Sofien's goal is to make Technical Analysis objective by incorporating clear conditions that can be analyzed and created with the use of technical indicators that rival existing ones.

Having elaborated many successful trading algorithms, Sofien is now sharing back the knowledge he has acquired over the years to make it accessible to everyone.