WEBVTT 00:00.680 --> 00:05.750 In this video you will learn how to add a simple moving averages and balloons up ends to interactive 00:05.750 --> 00:07.200 bluntly charts. 00:07.280 --> 00:15.830 So both are actually technical indicators used in technical analysis and we are still imparted our Apple 00:15.830 --> 00:21.370 data frame with historical Apple stock prices so adjusted close close. 00:21.380 --> 00:22.730 High low and so on. 00:23.360 --> 00:30.320 And there is actually a special object for creating interactive graphs with technical indicators and 00:30.320 --> 00:31.840 this is off the cuff links. 00:31.880 --> 00:37.430 Quant fake object and we can create the object to this. 00:37.520 --> 00:45.260 Using the cufflinks and then the method quant fake and here but then the parent uses we have to pass 00:45.290 --> 00:52.520 a data frame so for example here our Apple data frame with the stock price data and already here you 00:52.520 --> 00:58.910 can see that the default setting is that we get a candlestick chart and we actually save for the quant 00:58.910 --> 01:06.590 fake object here and the variable QF and let's check the data type of QF. 01:07.610 --> 01:15.020 So that's a cufflinks quant fake object and we not only can use the eye plot method on the pan US data 01:15.020 --> 01:23.600 frame but also on a quant fake object and the let's through this here and in addition we define the 01:23.600 --> 01:27.050 title of our graph to be Apple and also the name. 01:27.050 --> 01:28.390 So let's have a look here. 01:30.560 --> 01:38.750 So here we have the title of our graph and here the name it's apple and you can see actually the candlestick 01:38.910 --> 01:39.410 chart. 01:39.410 --> 01:46.760 So we have here our open high low close the prices for the Apple stock represented in a candlestick 01:46.760 --> 01:49.210 chart. 01:49.300 --> 01:55.830 So this is actually pretty much the same as we did hear above so that's also here. 01:55.840 --> 02:02.130 The candlestick chart for the Apple stock and you might question yourself Now why do we use here the 02:02.180 --> 02:08.850 cufflinks quant fake object when we can also create here the candlestick chart simply with the eye plot 02:08.850 --> 02:16.370 method on the US data frame and the simple answer is that they can't fake object. 02:16.410 --> 02:19.800 Gives us even more flexibility and functionality 02:22.540 --> 02:29.650 so here we have the candlestick chart and now the powerful thing is that we can add additional technical 02:29.650 --> 02:37.570 indicators to our quanta fake object and for example we can call here the method at simply moving ever 02:37.670 --> 02:39.840 US and the v defined to F.. 02:40.000 --> 02:45.100 Simple moving average US ON THE LAST The 20 year periods. 02:45.100 --> 02:52.420 So if you check here the available methods and attributes on our quant fake object and we can see that 02:52.480 --> 03:00.070 there are quite a lot so we can add Ballinger pants and the many more technical indicators and also 03:00.080 --> 03:06.490 here simple moving average US support lines trend lines and so on and also the volume. 03:06.700 --> 03:08.720 So let's run here the. 03:09.910 --> 03:16.180 And by doing so we automatically added the simple moving averages with 20 periods to our quant fake 03:16.270 --> 03:22.630 object and if we now again plot our quant fake object with the eye plot method. 03:22.660 --> 03:25.930 So this is exactly the same code as above here. 03:25.930 --> 03:30.810 But meanwhile we edit here the simple moving averages and let's have a look. 03:34.550 --> 03:39.960 And here we have actually the simple moving averages with 20 periods. 03:40.220 --> 03:41.270 And to recall it. 03:41.270 --> 03:50.150 So that's the average stock price over the last 20 days and now we can add even more technical indicators 03:50.150 --> 03:53.770 to our quantified object and we can also add. 03:53.810 --> 03:59.140 Ballinger bans here and again we select the last the 20 period. 03:59.150 --> 04:07.130 So also this is a rolling statistic and we have to define the standard deviation so I will explain this 04:07.130 --> 04:09.020 in a few seconds. 04:09.620 --> 04:13.820 So we at here the polar jump ends and now we a re plot. 04:13.850 --> 04:16.220 The conflict with the I plot method 04:19.410 --> 04:26.160 and here we have actually the Bollinger bands and the balloons events are a technical analysis tool 04:26.160 --> 04:33.030 developed by John Ballinger in the nineteen hundred and 80s and they actually three lines that compose 04:33.030 --> 04:34.310 the ball and Japan's. 04:34.400 --> 04:40.470 So that's the simple moving average which also contains the to the Bollinger bands and then we have 04:40.470 --> 04:48.710 an upper band here and a lower band and the upper and the lower bands are typically two standard deviations 04:48.710 --> 04:56.960 away from the 20 days simple moving average but uh that can be modified so we can modify the window 04:57.350 --> 05:02.630 and we can also choose for example 50 periods and we can also define that. 05:02.660 --> 05:08.990 We want to f for the upper and be lower bands with for example one or three standard deviations away 05:08.990 --> 05:15.740 from the simple moving average and the question is now what is that the intuition behind Bollinger Bands 05:16.190 --> 05:24.500 and the if the distance between the upper band and the lower band is narrow then this is an indication 05:24.500 --> 05:31.910 for low volatility and if the distance between those two is wide then this is an indication for high 05:31.910 --> 05:40.420 volatility and actually some might argue that if the current stock prices at the lower band this is 05:40.450 --> 05:42.880 a sign to buy or to Sarah. 05:42.890 --> 05:49.560 So depending on your philosophy and also if the current prices that the upper band then. 05:49.600 --> 05:53.070 This can be assigned to buy or to sell the stock. 05:53.440 --> 05:56.560 So that was that the video on and active political bands. 05:56.590 --> 06:03.210 And the next video we will learn how to add some more technical indicators here to our interactive plot 06:03.310 --> 06:03.750 graph. 06:03.760 --> 06:05.200 So hope to see you there by.