#CurrencyPairPrediction Feature Creation (Generate Smart Features) This step is critical — you want features that capture important trading behavior. Popular Engineered Features: Feature Category Examples Purpose Technical Indicators Moving Averages (SMA, EMA), RSI, MACD, Bollinger Bands, ATR Capture momentum, trend strength, volatility Price Derived Features - Returns: r_t = \frac{P_t - P_{t-1}}{P_{t-1}}- Log returns- Rolling mean/variance Measure price movement Volatility Measures - Historical Volatility- GARCH estimates Assess risk or uncertainty Volume Features - Volume spike detection- Volume weighted average price (VWAP) Indicate liquidity and market strength Temporal Features - Day of week- Hour of day- Month-end effect Capture calendar-based patterns Order Book Features - Bid-ask spread- Order book imbalance Useful for HFT or scalping models Sentiment Analysis - News polarity- Economic surprise index Measure market emotions Macro Factors - Interest rate differential- Trade balances Capture fundamental market drivers