Untitled

# import necessary packages
import numpy as np
import pandas as pd
import matplotlib.pyplot as plt

# set parameters
order = 5
K = 2

# define function to detect higher highs
def getHigherHighs(data: np.array, order=5, K=2): 
    ''' Finds consecutive higher highs in price pattern. Must not be exceeded within the number of periods indicated by the width  parameter for the value to be confirmed. K determines how many consecutive highs need to be higher. ''' 
    # Get highs
    high_idx = argrelextrema(data, np.greater, order=order)[0]
    highs = data[high_idx]
    
    # Ensure consecutive highs are higher than previous highs
    extrema = []
    ex_deque = deque(maxlen=K)
    for i, idx in enumerate(high_idx):
        if i == 0:
            ex_deque.append(idx)
            continue
        if highs[i] < highs[i-1]:
            ex_deque.clear()
            ex_deque.append(idx)
        if len(ex_deque) == K:
            extrema.append(ex_deque.copy())
    return extrema

# detect divergences
hh = getHigherHighs(price, order)
lh = getLowerHighs(price, order)
ll = getLowerLows(price, order)
hl = getHigherLows(price, order)

# get confirmation indices
hh_idx = np.array([i[1] + order for i in hh])
lh_idx = np.array([i[1] + order for i in lh])
ll_idx = np.array([i[1] + order for i in ll])
hl_idx = np.array([i[1] + order for i in hl])

# plot results
plt.figure(figsize=(12, 8))
plt.plot(data['Close'])
plt.scatter(dates[hh_idx], price[hh_idx-order], marker='^', c=colors[1])
plt.scatter(dates[lh_idx], price[lh_idx-order], marker='v', c=colors[2])
plt.scatter(dates[ll_idx], price[ll_idx-order], marker='v', c=colors[3])
plt.scatter(dates[hl_idx], price[hl_idx-order], marker='^', c=colors[4])
_ = [plt.plot(dates[i], price[i], c=colors[1]) for i in hh]
_ = [plt.plot(dates[i], price[i], c=colors[2]) for i in lh]
_ = [plt.plot(dates[i], price[i], c=colors[3]) for i in ll]
_ = [plt.plot(dates[i], price[i], c=colors[4]) for i in hl]
plt.xlabel('Date')
plt.ylabel('Price ($)')
plt.title(f'Potential Divergence Points for {ticker} Closing Price')
legend_elements = [ Line2D([0], [0], color=colors[0], label='Close'), Line2D([0], [0], color=colors[1], label='Higher Highs'), Line2D([0], [0], color='w', marker='^', markersize=10, markerfacecolor=colors[1], label='Higher High Confirmation'), Line2D([0], [0], color=colors[2], label='Higher Lows'), Line2D([0], [0], color='w', marker='^', markersize=10, markerfacecolor=colors[2], label='Higher Lows Confirmation'), Line2D([0], [0], color=colors[3], label='Lower Lows'), Line2D([0],.