Distribution Of Returns

v10.3
Distribution Of Returns

This indicator checks all the candles between the latest one and whatever start date you set (or all of the candles on the chart if you set StartDate to zero) and calculates the rate of return from close to close of each candle. It then counts how many candles returns fit into each specific range (in buckets of 0.25%) from -5% return to +5% return and displays it as a bar chart.

The values above the bars represent the (rounded) percentage of candles whose rate of return fell into that specific range.

The values below the chart indicates rate of return. Each bar represents a 0.25% range  (so 0.0% to 0.25% then 0.25% to 0.5% and so on). The bars at either end of the chart represent returns greater than 5% and returns lower than -5%.

An arrow is shown that represents which group the most recent still forming candles rate of return is in.

Add it as a separate indicator and zoom into the latest candles. Making the indicator full screen also makes it easier to read.

Originally intended for use on daily charts but it can also be used on other time frames. On faster time frames it is of less use as the rate of return of each candle is usually much smaller than the minimum 0.25%.

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Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

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  1. Vonasi • 05/22/2019 #

    Discussion regarding this indicator can be found here: https://www.prorealcode.com/topic/distribution-of-returns-indicator/#post-99021

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