moving_average_trading_signal.py

# Take long positions
data['long_positions'] = np.where(data['short_mavg'] > data['long_mavg'], 1, 0)

# Take short positions
data['short_positions'] = np.where(data['short_mavg'] < data['long_mavg'], -1, 0)

data['positions'] = data['long_positions'] + data['short_positions'] 

# Plot close price and moving averages
plot_data = data[-3000:]
plt.figure(figsize=(10, 7))
plt.title('Long and Short Signal', fontsize=14)
plt.xlabel('Date')
plt.ylabel('Price')

plt.plot(plot_data['Close'], label='Close')
plt.plot(plot_data['short_mavg'], label='50-Day Moving Average')
plt.plot(plot_data['long_mavg'], label='200-day Moving Average')


plt.plot(plot_data[(plot_data['long_positions'] == 1) &
                       (plot_data['long_positions'].shift(1) == 0)]['short_mavg'],
         '^', ms=15, label='Buy Signal', color='green')


plt.plot(plot_data[(plot_data['short_positions'] == -1) &
                       (plot_data['short_positions'].shift(1) == 0)]['short_mavg'],
         '^', ms=15, label='Sell Signal', color='red')

plt.legend()
plt.show()