price_change is the multiplicative factor, such that: new_price = old_price * price_change; additionally, if we had long position, our portfolio would change: new_portfolio_usd = old_portfolio_usd * price_change.
These should be “(price_change + 1)”, right?
One neat thing about that that I didn’t realize myself is that it looks like the SMA has done a decent job of acting as support/resistance historically.
I’m not familiar with support/resistance, can you clarify?
price_change=price/old_price, so no.pct_change is what you’re thinking.
Basically support is some line (horizontal or angled) which predicts when the price going down will stop and revert to going up. It’s acting as a kind of “support”. Resistance is the opposite. I’ll probably end up writing a post on this sometime.
Minor comments:
These should be “(price_change + 1)”, right?
I’m not familiar with support/resistance, can you clarify?
price_change=price/old_price, so no.pct_changeis what you’re thinking.Basically support is some line (horizontal or angled) which predicts when the price going down will stop and revert to going up. It’s acting as a kind of “support”. Resistance is the opposite. I’ll probably end up writing a post on this sometime.