Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Adds Introduction Guide to the Technical Analysis Menu #1964

Merged
merged 5 commits into from
Jun 21, 2022
Merged
Show file tree
Hide file tree
Changes from all commits
Commits
File filter

Filter by extension

Filter by extension

Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
37 changes: 37 additions & 0 deletions routines/ta_demo.openbb
Original file line number Diff line number Diff line change
@@ -0,0 +1,37 @@
# Demonstration of the Technical Analysis features, using SPY. No arguments are required to run this routine.

# Enter stocks menu, load intraday SPY with 30 minute interval, enter the T/A menu.
stocks
load spy -i 30
ta

# Show the RSI and OBV for 30 minute intervals and weekly intervals.
rsi
obv
..
load spy -w
ta
rsi
obv

# Show one week of OBV, VWAP, Bollinger Bands, MACD, and Fibonacci Retracements with one-minute intervals.
..
load spy -i 1
ta
obv
vwap
bbands
fib
macd

# Print T/A summary
summary

# Show long chart of SPY with monthly intervals with EMA for 3 and 6 months & MACD using six months as the slow and 4 as the signal.
..
load spy -s 1993-02-01 -m
ta
ema 3,6
macd -f 1 -s 6 --signal 4
..
candle --ma 6,12
72 changes: 69 additions & 3 deletions website/content/terminal/common/technical_analysis/_index.md
Original file line number Diff line number Diff line change
@@ -1,8 +1,74 @@
---
title: Introduction to the Technical Analysis Menu
keywords: "technical, analysis, ta, t/a, intraday, daily, indicators, signals, average, moving, exponential, rsi, fibonacci, retracement, bollinger, heltner, accumulation, distribution, obv, on-balance, volume, volatility, trend, momentum, overlap, crypto, stocks, funds, etf, etfs"
date: "2022-06-17"
type: guides
status: publish
excerpt: "This guide introduces the Technical Analysis menu, which is common across many sections of the OpenBB Terminal."
geekdocCollapseSection: true
---

The study of financial market action is known as **Technical Analysis**. The technician examines price changes that occur on a daily, weekly, or monthly basis, or over any other fixed time period displayed graphically as charts. As a result, the term "chart analysis" was coined. A chartist merely looks at price charts, whereas a technical analyst looks at technical indications resulting from price changes as well. Instead of looking at the fundamental causes that (appear to) influence market prices, technical analysts look at how the financial markets behave. Even if all relevant information about a specific market or stock were accessible, technicians believe it would be impossible to forecast an exact market "reaction" to that information.
The Technical Analysis menu offers the user a suite of tools for analyzing the technical components of an asset's trading history. The menu can be found in most wings of the Terminal:
- <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/cryptocurrency/" target="_blank">Crypto</a>
- <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/stocks/" target="_blank">Stocks</a>
- <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/" target="_blank">ETF</a>
- <a href ="https://openbb-finance.github.io/OpenBBTerminal/terminal/forex/" target="blank">ForEx</a>

**Available commands**
{{< toc-tree >}}
The commands are divided by categories that define their purpose for general-use:
- Overlap - Moving averages
- Momentum - Oscillating signals
- Trend - Directional strength
- Volatility - Width of the price bands
- Volume - Singling out volume
- Custom - Fibonacci retracements

All commands in this menu will rely on the interval and window chosen when <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/stocks/load/" target="_blank">loading an asset for analysis</a>. Refer to the directory tree on the left side of the page for information on individual commands. To get a better understanding of what these features are, and the formulas behind them, a number of sources should be consulted; but, a good starting point is <a href="https://www.investopedia.com/terms/t/technicalanalysis.asp" target="_blank">Investopedia</a>.

<h2>How to use the Technical Analysis Menu</h2>

To begin, enter the menu from one of the menus listed above by entering `ta`.

![The Technical Analysis menu, with BTC loaded](https://user-images.githubusercontent.com/85772166/174499113-02648936-f8d1-40ca-8ba3-036fb4324666.png)

Choose a beginning and end date to see a volume-weighted average price chart of the loaded ticker. `vwap --start 2022-01-01 --end 2022-06-17`

![BTC VWAP YTD](https://user-images.githubusercontent.com/85772166/174499127-cc20f16c-dd68-4ce3-9d10-cd6ce762a346.png)

The Fibonacci retracements are drawn with <a href="https://en.wikipedia.org/wiki/Fibonacci_number" target="_blank">`fib`</a>

![SPY Fibonacci retracement from the recent lower high](https://user-images.githubusercontent.com/85772166/174499173-5d3dbdb7-8147-459b-88d3-7caae9102aa5.png)

See the <a href="https://www.investopedia.com/terms/o/onbalancevolume.asp" target="_blank">on-balance volume</a> for the time-period loaded.

![OBV for ARKK YTD](https://user-images.githubusercontent.com/85772166/174499183-42d246d9-0a0f-4c76-8c4e-de22ad2e396d.png)

The help dialogue for any feature is printed by attaching `-h` to the command.

<h2>Examples</h2>

`recom` & `summary` are commands available only with a stock loaded as the asset. `summary` is a text description of the technical conditions.
````
(🦋) /stocks/ta/ $ summary
MSFT price has changed 1.29% in the last 3 days and 1.09% yesterday.
RSI is less than 30 and the indicator is pointing downwards.
Asset is in the oversold area.
MACD is in the Bearish area and the histogram is moving upwards.
MSFT price is trading below the 200-day SMA line and the SMA is trending down.
The asset price is between the Middle and the Lower Bollinger Bands.
````
`recom` projects buy & sell signals for the short-term.

![Recommendations from T/A](https://user-images.githubusercontent.com/85772166/174499195-9d4f8604-dec9-453f-815d-6c89f2b8b216.png)

Bollinger Bands with a 1-minute resolution for AMZN - `bbands`

![AMZN Bollinger Bands](https://user-images.githubusercontent.com/85772166/174499209-ec7eb606-bc86-4cb3-8375-a24b2c235085.png)
![AMZN Bollinger Bands](https://user-images.githubusercontent.com/85772166/174499232-63412ad9-e74c-4f44-a0f3-8722d98a27c6.png)

The Accumulation/Distribution line of AMZN - `ad`

![AMZN Accumulation/Distribution Line](https://user-images.githubusercontent.com/85772166/174499247-e63f8f57-a06a-446b-bca3-0fe89258fd4b.png)

To play a demonstration of this menu in the OpenBB Terminal run, `exe ta_demo.openbb`, from the main menu.

Back to the <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/stocks/" target="_blank">Introduction to Stocks</a>.