BarAnnualization (Function)

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The BarAnnualization function returns an annualization factor based on the bar interval (daily, weekly, or monthly) of the chart.

Syntax

BarAnnualization

Returns (Double)

A positive numeric value for the current bar.

Parameters

None

Remarks

This function does not work with intraday charts.

You can use the BarAnnualization factor to calculate and compare the annualized standard deviation of some values over multiple time frames; it is also used in options analysis and other annualized calculations.

  • Daily annualization factor = 15.87 (square root of 252, based on 252 trading days in a year)

  • Weekly annualization factor = 7.2111 (square root of 52)

  • Monthly annualization factor = 3.4641 (square root of 12)

Example

Assigns the annualized Standard Deviation of the Close over 10 bars on a daily chart to Value1, and assigns the annualized Standard Deviation of the Close over 10 bars on a weekly chart to Value2, in a multi-data chart; then plots Value1 and Value2:

Value1 = StdDev(Close, 10) * BarAnnualization;

Value2 = StdDev(Close of data2, 10) * BarAnnualization of data2;

Plot1(Value1,"DStdDev");

Plot2(Value2,"WStdDev");