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Technicall analysis

How to reset the current trader operation

Technical Analysis Script Overview

This script performs a comprehensive technical analysis on cryptocurrency market data. The script uses various financial indicators, models, and data sources to predict future price movements and provide investment suggestions. Below is a breakdown of the key components and functionality of the code.

Key Libraries and Imports​

The script imports a wide range of libraries to handle various aspects of the analysis:

  • requests: For making HTTP requests to fetch market data.
  • warnings: To filter warnings, specifically for ignoring ConvergenceWarnings from statistical models.
  • sys, os: For file system operations and environment variable management.
  • Binance API: Access to cryptocurrency market data.
  • dotenv: Loads environment variables from a .env file.
  • pandas, numpy: Data manipulation and analysis.
  • scipy.stats: Statistical functions.
  • ta, sklearn, statsmodels, xgboost: For technical analysis, machine learning, and statistical modeling.
  • joblib: For saving and loading machine learning models.
  • multiprocessing, concurrent.futures: For parallel processing.

Script Functionality​

1. Fetching Historical Data​

The get_historical_data function retrieves historical market data (OHLCV) for a given cryptocurrency symbol from Binance.

2. Technical Indicator Calculation​

The analyze_data_with_indicators function calculates various technical indicators, such as:

  • EMA (Exponential Moving Average)
  • MACD (Moving Average Convergence Divergence)
  • RSI (Relative Strength Index)
  • OBV (On Balance Volume)
  • ATR (Average True Range)
  • VWAP (Volume Weighted Average Price)

These indicators help in understanding market trends, momentum, and volatility.

3. Fibonacci Levels Calculation​

The calculate_fibonacci_levels function computes Fibonacci retracement levels based on historical price data, which are used to identify potential support and resistance levels.

4. Predicting Prices Using Different Models​

The script includes three different models for price prediction:

  • Linear Regression (predict_next_price_linear)
  • ARIMA Model (predict_next_price_arima)
  • XGBoost (predict_next_price_xgboost)

These models are trained on historical price data and are saved for future predictions. If the models already exist, they are loaded and used for prediction.

5. Signal Interpretation​

The interpret_signals function analyzes the calculated technical indicators and provides an overall bullish, bearish, or neutral signal.

6. Risk Management Calculations​

The script includes functions for managing risk:

  • Stop Loss (calculate_stop_loss): Determines a stop-loss price based on ATR.
  • Trailing Stop Loss (calculate_trailing_stop_loss): Adjusts the stop-loss price as the market price moves in favor of the trade.
  • Maximum Investment (calculate_max_investment): Calculates the maximum amount to invest based on trading volume and price.

7. Market Sentiment Analysis​

The get_fear_and_greed_index function fetches the Fear and Greed Index from an external API to gauge the current market sentiment.

8. Liquidity Analysis​

Functions like fetch_market_depth and fetch_bid_ask_spread analyze market liquidity, helping to understand trading costs and market stability.

9. Elliott Wave Confirmation​

The script uses Elliott Wave theory to confirm bullish or bearish signals, especially for BTC, which can indicate the overall market trend.

10. Comprehensive Technical Analysis​

The technical_analysis function ties everything together, performing a full technical analysis on the given symbol, interval, and historical data. It provides:

  • Overall market signal (bullish/bearish/neutral)
  • Suggested price targets based on Fibonacci levels and predictions
  • Risk management suggestions (stop loss, trailing stop loss)
  • Investment recommendations
  • Market sentiment and liquidity analysis

Usage​

  • Select the technicall analysis in the menu option.
  • Enter the symbol you want to analyze. If the symbol does not exist on Binance, an exception will be thrown.
  • Select the interval: 1h, 4h, or 1d. If the interval is not within this range, an exception will be thrown.