Engineering Alpha

Engineering Alpha

This Simple Yet Interesting Trading Strategy.

Creating K’s Cooldown Indicator in Python.

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Feb 28, 2022
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The bigger the distance between an open price and the closing price, the farther we are from normality. Is that information useful in formulating reversal strategies? This article discusses the cooldown indicator which deals with this issue. We will also see a strategy where it is combined with the RSI.

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