Hello and welcome to the Technical Indicators in Financial Analysis course! In today's lesson, we'll explore how to calculate and visualize the Simple Moving Average (SMA) for Tesla ($TSLA
) stock prices using Pandas
in Python. The goal is to help you understand how to handle stock price data, compute a key technical indicator (SMA), and interpret the results visually. Here is the lesson plan:
- Introduction to Financial Data Handling.
- Loading and Preprocessing
$TSLA
Data. - Calculating the 20-day Simple Moving Average (SMA).
- Visualizing SMA with Stock Prices.
- Summary and Next Steps.
Before diving into the code, it's essential to understand why financial data handling is crucial. Financial data analysis allows traders and analysts to interpret market trends, predict future stock movements, and make informed decisions.
We'll be using Pandas
, a powerful Python library for data manipulation and analysis. Pandas mainly operates with DataFrames
and Series
, making it excellent for time series data like stock prices.
Time series data involves data points indexed in time order. In the context of stock prices, each data point corresponds to the stock price at a specific date and time.
