Notice: This page requires JavaScript to function properly.
Please enable JavaScript in your browser settings or update your browser.
Lære Challenge: Signal Visualization with Moving Averages | Visualizing Market Trends and Indicators
Practice
Projects
Quizzes & Challenges
Quizzes
Challenges
/
Python for Traders

bookChallenge: Signal Visualization with Moving Averages

In real-world trading, visualizing moving averages and their crossovers can help you spot potential buy or sell signals. You will work with a hardcoded set of closing prices, calculate two moving averages, and plot both together. Your goal is to clearly mark every point where the short-term average (3-day) crosses above or below the long-term average (5-day), highlighting possible trading signals.

123456789101112131415161718192021222324252627282930313233343536373839404142
import pandas as pd import matplotlib.pyplot as plt import numpy as np # Hardcoded closing prices for 15 days data = { "date": pd.date_range("2024-01-01", periods=15, freq="D"), "close": [100, 102, 101, 105, 108, 110, 107, 106, 108, 109, 111, 113, 112, 114, 115] } df = pd.DataFrame(data) df.set_index("date", inplace=True) # Calculate 3-day and 5-day simple moving averages df["SMA_3"] = df["close"].rolling(window=3).mean() df["SMA_5"] = df["close"].rolling(window=5).mean() # Find crossover points df["signal"] = 0 df["signal"][df["SMA_3"] > df["SMA_5"]] = 1 df["signal"][df["SMA_3"] < df["SMA_5"]] = -1 df["crossover"] = df["signal"].diff() # Plotting plt.figure(figsize=(12, 6)) plt.plot(df.index, df["close"], label="Close Price", color="black", linewidth=2) plt.plot(df.index, df["SMA_3"], label="3-Day SMA", color="blue", linestyle="--") plt.plot(df.index, df["SMA_5"], label="5-Day SMA", color="red", linestyle="-.") # Mark crossover points buy_signals = df[df["crossover"] == 2] sell_signals = df[df["crossover"] == -2] plt.scatter(buy_signals.index, buy_signals["close"], marker="^", color="green", s=100, label="Buy Signal (3>5)") plt.scatter(sell_signals.index, sell_signals["close"], marker="v", color="red", s=100, label="Sell Signal (3<5)") plt.title("Moving Average Crossover Signals") plt.xlabel("Date") plt.ylabel("Price") plt.legend() plt.grid(True) plt.tight_layout() plt.show()
copy
Note
Definition

Definition: A moving average crossover occurs when a short-term moving average crosses above (bullish) or below (bearish) a longer-term moving average. Traders often use these crossovers to generate buy or sell signals.

Oppgave

Swipe to start coding

Plot the closing prices and both moving averages using the provided hardcoded data. Then, mark all crossover points with buy (when the 3-day SMA crosses above the 5-day SMA) and sell (when the 3-day crosses below the 5-day) markers. Your plot should:

  • Display the close price, 3-day SMA, and 5-day SMA.
  • Mark every crossover with a green upward triangle for buy signals.
  • Mark every crossover with a red downward triangle for sell signals.
  • Include a legend and axis labels.

Løsning

Alt var klart?

Hvordan kan vi forbedre det?

Takk for tilbakemeldingene dine!

Seksjon 2. Kapittel 7
single

single

Spør AI

expand

Spør AI

ChatGPT

Spør om hva du vil, eller prøv ett av de foreslåtte spørsmålene for å starte chatten vår

Suggested prompts:

Can you explain how the crossover signals are detected in this code?

What do the buy and sell markers represent on the plot?

Can you walk me through the logic for calculating the moving averages?

close

bookChallenge: Signal Visualization with Moving Averages

Sveip for å vise menyen

In real-world trading, visualizing moving averages and their crossovers can help you spot potential buy or sell signals. You will work with a hardcoded set of closing prices, calculate two moving averages, and plot both together. Your goal is to clearly mark every point where the short-term average (3-day) crosses above or below the long-term average (5-day), highlighting possible trading signals.

123456789101112131415161718192021222324252627282930313233343536373839404142
import pandas as pd import matplotlib.pyplot as plt import numpy as np # Hardcoded closing prices for 15 days data = { "date": pd.date_range("2024-01-01", periods=15, freq="D"), "close": [100, 102, 101, 105, 108, 110, 107, 106, 108, 109, 111, 113, 112, 114, 115] } df = pd.DataFrame(data) df.set_index("date", inplace=True) # Calculate 3-day and 5-day simple moving averages df["SMA_3"] = df["close"].rolling(window=3).mean() df["SMA_5"] = df["close"].rolling(window=5).mean() # Find crossover points df["signal"] = 0 df["signal"][df["SMA_3"] > df["SMA_5"]] = 1 df["signal"][df["SMA_3"] < df["SMA_5"]] = -1 df["crossover"] = df["signal"].diff() # Plotting plt.figure(figsize=(12, 6)) plt.plot(df.index, df["close"], label="Close Price", color="black", linewidth=2) plt.plot(df.index, df["SMA_3"], label="3-Day SMA", color="blue", linestyle="--") plt.plot(df.index, df["SMA_5"], label="5-Day SMA", color="red", linestyle="-.") # Mark crossover points buy_signals = df[df["crossover"] == 2] sell_signals = df[df["crossover"] == -2] plt.scatter(buy_signals.index, buy_signals["close"], marker="^", color="green", s=100, label="Buy Signal (3>5)") plt.scatter(sell_signals.index, sell_signals["close"], marker="v", color="red", s=100, label="Sell Signal (3<5)") plt.title("Moving Average Crossover Signals") plt.xlabel("Date") plt.ylabel("Price") plt.legend() plt.grid(True) plt.tight_layout() plt.show()
copy
Note
Definition

Definition: A moving average crossover occurs when a short-term moving average crosses above (bullish) or below (bearish) a longer-term moving average. Traders often use these crossovers to generate buy or sell signals.

Oppgave

Swipe to start coding

Plot the closing prices and both moving averages using the provided hardcoded data. Then, mark all crossover points with buy (when the 3-day SMA crosses above the 5-day SMA) and sell (when the 3-day crosses below the 5-day) markers. Your plot should:

  • Display the close price, 3-day SMA, and 5-day SMA.
  • Mark every crossover with a green upward triangle for buy signals.
  • Mark every crossover with a red downward triangle for sell signals.
  • Include a legend and axis labels.

Løsning

Switch to desktopBytt til skrivebordet for virkelighetspraksisFortsett der du er med et av alternativene nedenfor
Alt var klart?

Hvordan kan vi forbedre det?

Takk for tilbakemeldingene dine!

Seksjon 2. Kapittel 7
single

single

some-alt