Initial commit of Engulfing swing trading strategy

strategies/engulfing.py

@@ -0,0 +1,16 @@
+from numpy import where
+from pandas import DataFrame, Series
+
+from indicators import sma
+
+def engulfing(data: DataFrame) -> Series:
+    """
+    Generate swing trading signals based on the engulfing candlestick pattern.
+
+    Returns a Series with 'L' for long signals and 'N' otherwise.
+    """
+    is_engulfing = (data['High'] > data['High'].shift(1)) & (data['Close'] < data['Low'].shift(1))
+    is_above_200_ma = data['Close'] > sma(data, period = 200)
+
+    conditions = is_engulfing & is_above_200_ma
+    return Series(where(conditions, 'L', 'N'), index = data.index)