PS January Barometer Backtester

PS January Barometer Backtester (PS JBB)

The PS January Barometer Backtester (PS JBB) is a simple strategy designed to test the "January Effect" hypothesis in financial markets. This effect theorizes that stock market performance in January can predict the trend for the rest of the year. The script operates on a monthly timeframe, focusing on capturing and analyzing the price movements in January and their subsequent influence on the market until the end of each year.

User Input:

January Trifecta Selectors
These are user-selectable options allowing traders to incorporate additional criteria into their market analysis.

The Santa Claus Rally refers to a stock market increase typically seen in the last week of December through the first two trading days in January.
The First Five Days Indicator assesses market performance during the initial five days of the year.

Script Operation:

The script automatically detects the start of each year, tracks January's high, and signals entry and exit points for trades based on the strategy's logic. It's an excellent tool for traders and investors looking to explore the January Effect's validity and its potential impact on their trading decisions.

In essence, the "PS January Barometer Backtester" is designed to exploit specific seasonal market trends, particularly focusing on the early part of the year, by analyzing and acting upon defined market movements. This strategy is ideal for traders who focus on yearly cyclical patterns and seek to incorporate historical trends into their trading decisions.

Note: This script is intended for educational and research purposes and should not be construed as financial advice. Always conduct your own due diligence before making trading/investment decisions.

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 a publication is governed by House Rules. You can favorite it to use it on a chart.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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