Nano Course On Python For Trading
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Module 3

In this post, I will attempt to teach you how to write an algorithm in python to automatically find support and resistance. We shall use the data we downloaded in module 2.

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To visualize price action, I have used the daily candlestick chart. To quantify the meaning of support and resistance, I have taken below definitions:
In a series of 5 continuous candles, if the first three candles make increasing high and then 2 decreasing highs, then the

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high of the third candle is considered resistance. Similarly, if the first 3 candles make lower lows and the next 2 make high lows then the low of the third candle is support.

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The above explanation is for the sake of quantifying support and resistance at a very basic level. These are called fractals. Now let's get started with the code.

mpl_finance is the new module here. We will use its candlestick_ohlc function.

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Now, if you remember, you downloaded data for nifty 50 stocks in module 2. We shall use that data. Let's work on ITC data this time.
We will use data from 1 Jan 2021 to 30 June 2021.

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Nano Course On Python For Trading
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Module 3-B (Bonus)

In this Bonus Module, I will attempt to teach you how to write an algorithm to create a Stock Screener based on @markminervini 's Trend Template from his book Trade Like A Stock Market Wizard.

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Some of the readers asked about how to create a stock screener. So, I thought before jumping to the cloud and deploying an algorithm on the cloud, I should address this. Whatever algorithm we develop in this module, we will deploy it on the cloud in Module number 4.

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Pre-requisites:

• Read Module 2, so that you can download the historical data. A small assignment for you - write code to automate EOD data download and save it in the folder. We need to have the latest data for the screener. Hint: set end_date =

The rules are:

• The LTP of the stock > 150 SMA & 200 SMA
• The 150 SMA > 200 SMA
• The 200 SMA must be greater than 200 SMA 30 days ago.
• The 50 SMA > 150 SMA & 50 SMA > 200 SMA
• The LTP > 50 SMA
• The LTP must be greater than 30% of 52-Week Low

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• The LTP is close to 25% of the 52-Week High
• The Relative Strength(RS) should be greater than 70

SMA = Simple Moving Average
LTP = Last Traded Price

Let's get started with its coding.

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