Seasonality Pivot Points by Karl Montevirgen
Markets, some more than others, are impacted by seasonal tendencies such as production schedules, weather, and supply/demand conditions. A deeper analysis into these seasonal patterns can help reveal the reality behind price movements and could help in your strategy development. Here’s how.
Market seasonality is essentially a history of price movements, but one whose sole aim is to record patterns of consistency. These patterns, often appearing cyclical, may have some basis in actual supply/demand conditions. It is because of this possibility alone that some traders are tempted to view these patterns as market “tendencies.” Sadly, seasonality analysis has been slightly stigmatized by this erroneous and popular view ...