Average Returns Histogram For ThinkOrSwim

[justAnotherTrader]

You ever notice how some stocks do better on specific days of the week, times of the day or months of the year? This displays the average returns as a histogram.

For instance MSFT typically has above average returns in April and October and does poorly in December:

declare lower;

# Get the current chart's aggregation period
def timeFrame = GetAggregationPeriod();

# Define the length (number of periods) for calculating the average return
input length = 20;

# Calculate the return for the current time frame
def return = close(period = timeFrame) / close(period = timeFrame)[1] - 1;

# Calculate the average return for the current time frame
def averageReturn = Average(return, length);

# Plot the return as a histogram
plot ReturnHistogram = return;
ReturnHistogram.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);

# Assign colors to the histogram bars based on the return and average return
ReturnHistogram.AssignValueColor(
    if return > 0 and AbsValue(return) > AbsValue(averageReturn) then Color.GREEN else
    if return > 0 and AbsValue(return) < AbsValue(averageReturn) then Color.BLUE else
    if return < 0 and AbsValue(return) > AbsValue(averageReturn) then Color.RED else
    Color.ORANGE);