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Coding the “Doji” with Python
A doji is a candlestick pattern commonly used in technical analysis to evaluate the price action of financial assets such as stocks, currencies, and commodities. A doji occurs when the opening and closing prices of an asset are very close to each other, creating a candlestick with a very small or non-existent real body.
The appearance of a doji suggests that the market is in a state of indecision, where neither buyers nor sellers have control.
The length of the upper and lower shadows on the doji can also provide additional information about the strength of the buying and selling pressure.
There are different types of doji patterns, such as the long-legged doji, dragonfly doji, and gravestone doji, each with its own specific characteristics and implications for market trends.
Doji patterns can be used in conjunction with other technical analysis tools to identify potential trend reversals or continuations.
Coding the doji with Python
To detect a doji pattern in Python, you would first need to have access to financial market data such as stock prices, and then use a library such as TA-Lib to compute candlestick patterns. Here’s an example of how you could use TA-Lib to identify a doji pattern:
import talib
import pandas as…
