Basic Technical Trading Analysis with R
Why R?
-> A higher level programmimg language such as R or Matlab, coupled with their interactive programming environmnets,allow their users to slice, dice and analyze data within a fraction of time it takes with C++, C+ or Java.
From where do we get the data?
-> Either from the broker himself or any interactive Historical Data Downloader websites.
What is the project about?
-> Using a comma-seperate file containing open, high, low,Close...etc. columns I will demonstrate how to use a R library to calculate Simple Moving Average (SMA), Exponential Moving Average (EMA), Bollinger Bands (BBands), RSI, and MACD technical analysis indicators. I would then append calculated indicators as new columns to the input file so that it can be used for further analysis or trading strategy prototyping in Excel, R, or any other CSV-friendly software package of your choice.
How do we start the project?
-> Install R -> Install Technical Analysis Library for R -> Load the Input Data -> Calculate Moving Averages, Bollinger Bands, RSI- Relative Strength Indicator, MACD -> Join all Data Together -> Write to comma-seperate file.
Content of the files uploaded :
-> code.r:: An R file that contains the entire code of the project along with the non-visual output.
-> data.csv:: A comma-seperate file that contains the Historical Input Data without any technical indicators.
-> Bollinger Bands_colourless.jpeg:: A visual output of Bollinger Bands
-> Bollinger Bands_colour.jpeg:: A visual output of Bollinger Bands
-> data_with_indicators:: Final output file( can be text,excel or csv)