Developer Builds Python Trading Tool Combining Moving Averages and RSI Indicators
A software developer on DEV Community shared a tutorial on building a Python-based trading signal tool using two classic technical indicators: the Simple Moving Average (SMA) and the Relative Strength Index (RSI). The project was motivated by repeated losses on a demo trading account caused by unreliable manual chart analysis, which yielded a win rate of only around 45%. The tutorial explains how a 50-period SMA helps identify overall trend direction, while a 14-period RSI gauges market momentum by flagging overbought conditions above 70 and oversold conditions below 30. Using Python libraries pandas and yfinance, the author demonstrates how to calculate both indicators from scratch and generate buy or sell signals automatically. The guide is aimed at beginner-to-intermediate traders and developers looking to replace subjective chart-reading with a consistent, code-driven approach.
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