Month-of-Year Average Range Bands for Monthly Charts

Summary

This indicator estimates a separate average high-low range for each calendar month from the available monthly price history. For a January bar, for example, it uses the historical ranges of January bars to set the current band width. The range is centered on a configurable price series, such as the close or typical price, with an offset to select the month used as the center. A multiplier controls band width, and the display can use bands, shaded candles, or both.

The description explains the calculation and its settings, but provides no performance tests or evidence that the bands predict future prices. The measure is an average of high-low ranges rather than a volatility estimate based on returns, and its usefulness depends on the amount and representativeness of historical data. It is intended for monthly charts; users can also limit the dates included in the averages.

Key ideas

• The indicator calculates an average high-low range separately for each calendar month.
• It centers the resulting range around a configurable price series and month offset.
• A multiplier adjusts the width, while settings control whether bands or shaded candles appear.
• The indicator is designed for monthly charts and can use all available history or a chosen start date.
• The description provides no evidence that these historical seasonal ranges have predictive value.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.