Market Seasonality

 

seasonal trading softwareThe most advanced seasonal software available anywhere online. See the historical movement of 100’s of markets, showing you the best time to buy and sell a wide range of markets, from Gold to Orange Juice.

Our software shows traditional 10 year, 20 year and all-time patterns, but also advanced patterns to show you the years a market is currently following, custom patterns you can make of any year grouping you desire, and of course US election seasonal patterns are also available.

In addition to our advanced seasonal charts, our easy to use seasonal planner also tells you the start date of every optimum seasonal pattern. These optimum patterns cover periods the market has outperformed in terms of its directional consistency and its return. With this information you can plan for market moves weeks in advance, giving your trading strategy a genuine edge. Start a free trial HERE.
 

What is Seasonality?


Seasonality is the study of a market over time to establish if there is a regular and predictable change that occurs within that markets price every calendar year. Every market experiences periods of either greater supply or demand throughout the year, and it is these forces that drive seasonal patterns. Seasonal studies allow us to establish when these periods are, to give you an indication ahead of time how a market could perform in the future. So whether you want to be a seasonal stock trader, seasonal commodities trader, or even a seasonal forex trader, the information can be applied to any these market.

If you are completely new to seasonality you might find it beneficial to start with our seasonal performance heat map before getting into the charts. The heatmap is a high level overview of the monthly performance of each market, allowing you to quickly see direction as well as major turning points of a market.
 

Understanding seasonal charts


Seasonal charts plot the average movement of a market over a calendar year, and allows you to determine the two primary characteristics of a market, the direction it wants to take and the timing of major turning points. Having this information allows you to prepare and anticipate price action before it unfolds on the chart. Being prepared to catch new trending moves as they begin and being able to take profits before they end. Both incredibly powerful skills to boost your trading strategy. 

Looking at the GBPUSD 20-year seasonal chart below as an example, we can see a clear tendency for the market to decline through February and into March, before reversing strongly and moving higher in April. Of course this does not happen every year but there is a period through April where GBPUSD has been positive in 17 of the past 20 years, so it is very consistent and knowing this information about any market will give you a significant edge over other traders, as most simply don't know this information even exists. 

Looking at the chart further, the summer tends to range more than trend, before then seeing sustained weakness through quarter there. This information not only allows you to prepare for market moves but also what kind of move, trend or range, so you can trade accordingly. 

GBPUSD 20-year seasonal chart
(British Pound 20-year seasonal chart)
 
 

Don't fall into this seasonal trap


Many users of seasonal charts (even experienced traders I often see talking on social media) make the mistake of looking at every period of a seasonal chart and treating it with the same respect. By this I mean they look at every period of uptrend and downtrend in the same way to give them a 'seasonal bias' for that period, but this is WRONG. There are lots of periods within seasonal charts that are just noise, made from the average movement of the market which has no directional consistency what so ever.  
 
Take the example below on this EURUSD 20-year seasonal chart. The orange line repesents the average movement of price through the year, over the last 20 years. You will notice the period through July (July 4th to August 2nd) appears to show a strong uptrend direction, suggesting this is a bullish period for this market but if we look into the stats for this period, we can see in the top right, that it has only been positive 55% of the years during this period. Not much better than 50-50 and certainly not something that should be called a seasonal pattern or bias.

This is the biggest mistake people make when trying to use seasonal charts. A true seasonal pattern is when a market has directional consistency, the rest is just the average movement of price. The two are not the same. 


Remember, seasonality is study of a market over time to establish if there is a regular and predictable change in a markets price. This means it must happen more often that not and 50-50 is not regular change. If you want to use seasonality properly, you need a tool that will show you the periods where a market has consistently moved in the same direction year after year, and that is exactly what our software will do.
 
EURUSD 20-year seasonal pattern
(EURUSD 20-year seasonal chart) 
 


Trade true seasonal patterns


Now you understand what a seasonal chart is showing and the mistakes to avoid, our seasonal software will show you all the true seasonal patterns within a market, so you know the best time to buy or sell. Our seasonal software pinpoints all the periods a market has consistently moved in the same direction so you can always trade true seasonal patterns.

Looking at the GBPUSD 20-year seasonal chart once again, but this time with our optimum patterns highlighted at the bottom of the chart, (orange periods are sell patterns, blue periods are buy patterns), we can see 5 periods through the year where price has moved consistently in the same direction at least 75% of the time during the last 20 years, with the blue April pattern positive a whooping 85% of the time. This is true seasonal trading, and information every trader can benefit from.
 
GBPUSD 20-year seasonal chart with optimum patterns
(GBPUSD 20-year seasonal chart with optimum buy and sell patterns) 
 
 

Seasonal stock trading


As mentioned earlier, seasonal patterns can be found in any market, so whether you want to trade the S&P 500, NASDAQ 100, Apple, Microsoft, Starbucks, or any one of 100's of leading global stocks, our seasonal software will help transform your trading strategy and give you a genuine winning edge. The S&P 500 20-year seasonal chart below is another example of how knowing the optimum seasonal patterns can be so powerful. 5 periods, each with a minimum of 80% consistency over the last 20 years, all highlighted for you at the click of a mouse.

And thats not all, favourites such as Gold, Silver, Copper & Crude oil are also included, as well as markets where seasonal trading all began such as Wheat, Corn and even Coffee, 

(S&P500 20-year seasonal chart with optimum buy and sell patterns)  

 

trade with etoro



Try our Seasonal platform TODAY

Get access to all this plus much more with our seasonal platform. Hand picked trades ideas every month
within our seasonal planner, so you can focus on trading the highest quality markets.
try for free
 
 
   
Below is a selection of major markets you will have access to within our seasonal software. In addition to these there is also a wide range of seasonally significant US stocks and UK stocks, with the database growing all the time.
For a full list of markets covered, click here.

 
Currencies   Stock Indices Energies Softs
Euro S&P 500 Crude Oil Coffee
British Pound Dow 30 Heating Oil Cocoa
US Dollar Index        Nasdaq 100              Natural Gas       Sugar
Australian Dollar FTSE 100 Gasoline Cotton
New Zealand Dollar DAX   Lumber
Canadian Dollar CAC 40 Metals     Orange Juice    
Japanese Yen Nikkei 225 Gold  
Mexican Peso   Silver Grains
Swiss Franc US Sectors Platinum Wheat
  Con' Staples Palladium Corn
Presidential cycles   Con' Discretionary   Copper Soybeans
US Dollar Index Financials     Soybean Meal  
Euro Energy Treasurys Soybean Oil
British Pound Industrials 10-Year     
Australian Dollar Materials 5-Year  
Japanese Yen Utilities US - Bond  
S&P 500 Technology    
Gold Healthcare    
Crude Oil