Finding the Volatility of GameStop using Average True Range(ATR) — Plotting with Python and Plotly
Hello Everyone! My name is Andrew Fung, in this video, I will be showing you how to measure a stock's short-term volatility using the 14-day Average True Range in Python. It is one of the technical indicators that allows you to get an idea of the price changes and fluctuation happening to a stock.
#python #gme #wallstreetbets #atr #jupyternotebook #bb #datavisualization
Installation and Setup!
Installing Jupyter Notebook: https://jupyter.readthedocs.io/en/lat...
Installing panda_datareader: https://pandas-datareader.readthedocs...
Installing plotly: https://plotly.com/python/getting-sta...
Check out my Github!
https://github.com/Andrew-FungKinHo
Timestamps
0:00 | Introduction
1:04 | Initial input
4:52 | True Range(TR) calculation
7:01 | Data processing
11:16 | Computing ATR(%)
15:09 | Data Visualisation
20:20 | Out tro
Full code:
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import pandas as pd
import datetime as dt
import pandas_datareader.data as web
change the default plotting to plotly
pd.options.plotting.backend = 'plotly'
specify stock ticker and timeframe in concern
stock_chosen = ‘GME’
start = dt.datetime(2020,12,1)
end = dt.datetime(2021,2,17)
days_concerned = 14
retrieve data within the timeframe and store it in df
df = web.get_data_yahoo(stock_chosen,start,end)
get the closing price of the previous day
df['Previous Close'] = df['Adj Close'].shift()
The 3 calculations of True Range
df['High - Low'] = df['High'] - df['Low']
df['High - PClose'] = abs(df['High'] - df['Previous Close'])
df['Low - PClose'] = abs(df['Low'] - df['Previous Close'])
Compute the max out of the 3
df['True_Range'] = df[['High - Low','High - PClose','Low - PClose']].max(axis=1)
get the average TR for the previous 14 days or days_concerned
df['ATR'] = df.True_Range.rolling(window = days_concerned).mean() / df['Adj Close'] * 100
actual figure plotting
fig = df['ATR'].plot()
customize the plot
fig.update_layout(
title = f'{stock_chosen} {days_concerned}-day Average True Range %',
yaxis_title= 'ATR (%)',
legend_title='technical indicator'
)
visualize the plot
fig.show()
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Feel free to drop a like and comment if you enjoy and video and let me know if you want me to do other types of programming videos ;) !!!