3 Black Crows / 3 White Soldiers

mics

Sharing a simple candle indicator. These two patterns (coupled with other price movements), can be good indicators for price reversal:

3 White Soldiers
3 Black Crows

This is an adaptation from an earlier post by @backtrader.

3 Black Crows Example:

import backtrader as bt

class BlackCrows(bt.Indicator):

    lines = ('crows',)
    params = (
        ('period', 3),  # how many to consider
        ('ago', 0),  # offset to start in the past
    )

    def __init__(self):
        incs = [self.data.close(-i) < self.data.open(-i) for i in range(self.p.ago, self.p.ago + self.p.period)]
        self.lines.crows = bt.All(*incs)

Use in strategy below. I often use 5 consecutive candles when there has been a fast move that is reversing.

class TheStrategy(bt.Strategy):
    
    def __init__(self):
        self.three_crows = BlackCrows(self.data)  # 3 black crows. Default period = 3
        self.five_crows = BlackCrows(self.data, period=5)  # 5 black crows. Overrides period = 5

barton05

Maybe dont need to reinvent the wheel? Using bt.talib.CDL3WHITESOLDIERS and bt.talib.CDL3BLACKCROWS should work.

mics

@barton05 said in 3 Black Crows / 3 White Soldiers:

bt.talib

Must be a new addition since the backtrader website was developed. It isn't listed on the BT website.

https://www.backtrader.com/docu/talibindautoref/

Quite a few other great indicators in the ta-lib library too:

https://github.com/mrjbq7/ta-lib

Thanks for pointing this out.