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  • #31
    Your example data doesn't include anything from the treated group. So this code is not fully tested:
    Code:
    collapse (mean) sdresidual1, by(treated datacqtr)
    
    reshape wide sdresidual1, i(datacqtr) j(treated)
    label var sdresidual10 "Control"
    label var sdresidual11 "Treatment"
    
    local iquarter = tq(2018q1) // INTERVENTION TIME
    
    graph twoway (scatter sdresidual* datacqtr, xline(`iquarter'))  ///
        (lfit sdresidual10 datacqtr if datacqtr < `iquarter') ///
        ((lfit sdresidual11 datacqtr if datacqtr < `iquarter'))
    Some thoughts:
    1. I'm not sure how useful linear trend lines are in this context. The pre-intervention data in your example don't look very linear with time. Something special seems to be going on around 2016.

    2. The post-treatment data have no relevance to the parallel trends assumption. I have included them in the scatter plot, but not in the trends.

    3. You may need to play around with some options to get the legend into a more useful form.

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