OPEN-SOURCE SCRIPT
Seasonality Charts
How to use: open monthly chart
What this chart show: The seasonality tool calculates two numbers: the percentage of time that the month is positive above histogram and the average gain/loss for the month below histogram
Seasonality tells us what has happened in the past, which is the historical tendency. There is certainly no guarantee that past performance will equal future performance, but traders can look for above average tendencies to complement other signals. On the face of it, a bullish bias is present when a security shows gains more than 50% of the time for a particular month. Conversely, a bearish bias is present when a security rises less than 50% of the time. While 50% represents the exact middle, chartists should look for more extreme readings that suggest a relatively strong tendency.
What this chart show: The seasonality tool calculates two numbers: the percentage of time that the month is positive above histogram and the average gain/loss for the month below histogram
Seasonality tells us what has happened in the past, which is the historical tendency. There is certainly no guarantee that past performance will equal future performance, but traders can look for above average tendencies to complement other signals. On the face of it, a bullish bias is present when a security shows gains more than 50% of the time for a particular month. Conversely, a bearish bias is present when a security rises less than 50% of the time. While 50% represents the exact middle, chartists should look for more extreme readings that suggest a relatively strong tendency.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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