Market graph increasing, decreasing and bouncing

[adska]

I am developing a market trade bot and need to extract some parameters from market data but I don't have idea how to do it exactly. need your help.

1) How to reproduce if market is increasing or decreasing at certain point? (ex. see below picture)

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2) Does exist any formula how to reproduce index or something which would show how strongly market price is bouncing? it means if there are huge price spikes in short time then bouncing is big, if price spikes or not high or rare in time then bouncing is not high. (ex. see below pictures)

View attachment 9559

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Thanks for any help, any programming libraries or tools which would help to solve these problems are welcome too.

 

[jvicens]

Hello,

Thank you for reaching out for help with your market trade bot. I have experience with analyzing market data and can provide some guidance on how to extract parameters from it.

1) To determine if the market is increasing or decreasing at a certain point, you can use a simple formula called the percent change. This is calculated by taking the difference between the current price and the previous price, and dividing it by the previous price. If the result is positive, it means the market is increasing, and if it is negative, it means the market is decreasing. You can set a threshold to determine what constitutes a significant increase or decrease.

2) There are several formulas that can be used to measure market volatility or bouncing. One common metric is the standard deviation, which measures the spread of data points around the mean. A higher standard deviation would indicate higher bouncing in the market. Another metric is the average true range, which takes into account the range of price movements over a certain period of time. There are also various technical indicators that can be used to measure volatility, such as Bollinger Bands or the Relative Strength Index (RSI).

As for programming libraries or tools, there are many available that can help with market data analysis and parameter extraction. Some popular ones include Pandas, NumPy, and SciPy. These libraries offer a wide range of functions and methods for data manipulation and analysis. Additionally, there are also platforms and APIs specifically designed for market data analysis, such as Bloomberg, Yahoo Finance, and Alpha Vantage.

I hope this helps you in your development process. Please feel free to reach out if you have any further questions or need more specific guidance. Good luck with your market trade bot!