OPEN-SOURCE SCRIPT
Quadruple Witching
This Pine Script code defines an indicator named "Display Quadruple Witching" that highlights the chart background in green on specific days known as "Quadruple Witching." Quadruple Witching refers to the third Friday of March, June, September, and December when four types of financial contracts—stock index futures, stock index options, stock options, and single stock futures—expire simultaneously. This phenomenon often leads to increased market volatility and trading volume.
The indicator calculates the date of the third Friday of each quarter and highlights the chart background on these dates. This feature helps traders anticipate potential market impacts associated with Quadruple Witching.
Importance of Quadruple Witching
Quadruple Witching is significant in financial markets for several reasons:
Increased Market Activity: On these dates, the market often experiences a surge in trading volume as traders and institutions adjust their positions in response to the expiration of multiple derivative contracts (CFA Institute, 2020).
Price Movements: The simultaneous expiration of various contracts can lead to substantial price fluctuations and increased market volatility. These movements can be unpredictable and present both risks and opportunities for traders (Bodnaruk, 2019).
Market Impact: The adjustments made by institutional investors and traders due to the expirations can have a pronounced impact on stock prices and market indices. This effect is particularly noticeable in the days surrounding Quadruple Witching (Campbell, 2021).
References
CFA Institute. (2020). The Impact of Quadruple Witching on Financial Markets. CFA Institute Research Foundation. Retrieved from CFA Institute.
Bodnaruk, A. (2019). The Effect of Option Expiration on Stock Prices. Journal of Financial Economics, 131(1), 45-64. doi:10.1016/j.jfineco.2018.08.004
Campbell, J. Y. (2021). The Behaviour of Stock Prices Around Expiration Dates. Journal of Financial Economics, 141(2), 577-600. doi:10.1016/j.jfineco.2021.01.001
These references provide a deeper understanding of how Quadruple Witching influences market dynamics and why being aware of these dates can be crucial for trading strategies.
The indicator calculates the date of the third Friday of each quarter and highlights the chart background on these dates. This feature helps traders anticipate potential market impacts associated with Quadruple Witching.
Importance of Quadruple Witching
Quadruple Witching is significant in financial markets for several reasons:
Increased Market Activity: On these dates, the market often experiences a surge in trading volume as traders and institutions adjust their positions in response to the expiration of multiple derivative contracts (CFA Institute, 2020).
Price Movements: The simultaneous expiration of various contracts can lead to substantial price fluctuations and increased market volatility. These movements can be unpredictable and present both risks and opportunities for traders (Bodnaruk, 2019).
Market Impact: The adjustments made by institutional investors and traders due to the expirations can have a pronounced impact on stock prices and market indices. This effect is particularly noticeable in the days surrounding Quadruple Witching (Campbell, 2021).
References
CFA Institute. (2020). The Impact of Quadruple Witching on Financial Markets. CFA Institute Research Foundation. Retrieved from CFA Institute.
Bodnaruk, A. (2019). The Effect of Option Expiration on Stock Prices. Journal of Financial Economics, 131(1), 45-64. doi:10.1016/j.jfineco.2018.08.004
Campbell, J. Y. (2021). The Behaviour of Stock Prices Around Expiration Dates. Journal of Financial Economics, 141(2), 577-600. doi:10.1016/j.jfineco.2021.01.001
These references provide a deeper understanding of how Quadruple Witching influences market dynamics and why being aware of these dates can be crucial for trading strategies.
開源腳本
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Where others speculate, we systematize.
edgetools.org
edgetools.org
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
Where others speculate, we systematize.
edgetools.org
edgetools.org
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。