Finding Historically Active Trading Hours and Months by Average Range
Summary
This post describes two chart indicators for comparing typical price ranges across hours and months. Each groups observed high-minus-low ranges by hour or calendar month, computes an average for each group, and plots those averages as bars alongside an overall average line. Bars above the overall average receive a darker highlight, and vertical markers indicate the start of a new day or year. The hourly version is intended for hourly charts, while the monthly version is intended for monthly charts.
The indicators can help identify time buckets that have historically shown larger ranges in a given market, which may inform when a trader investigates activity or plans execution. The post supplies code and a visual explanation, but no market examples, out-of-sample analysis, or evidence that higher average range leads to better trading opportunities. Results depend on the data history and chart setup, and range measures movement without indicating direction. The display is descriptive and does not provide a standalone entry, exit, or risk-management strategy.
Key ideas
- The indicators group high-low ranges by hour or calendar month and calculate averages.
- Bars show bucket averages against an overall average line, with above-average buckets highlighted.
- Vertical markers identify the start of a new day in the hourly view and a new year in the monthly view.
- The hourly and monthly indicators are intended for matching chart timeframes.
- Average range indicates historical movement size, not price direction or future profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.