One of the more interesting ways to look at the fundamentals of a market are through its tendencies. I have shared aspects of this – more near-term tendencies – through pip movement range analysis. This looks at what pair does hour to hour and day to day historically. But what about longer-term tendencies?
Enter the seasonal chart.
Now I will warn you. Some forex traders get a hold of a seasonal chart and covet it as if it were a crystal ball. It’s not. However there are rhythms we can look at especially if it looks like the current price action is dancing to these rhythms already. Like any correlation, we need to FIRST confirm that there is respect for the seasonal tendency ALREADY and not simply impose this expectation on a market that seems not to care!
Why NOW for a seasonal discussion. Simpy this: As we enter the month of May, the “sell May and go away” seasonal will be like the coolest kid in town. So it’s time to see this tool for what it really is: Good and bad.
Sign up for Queen Cleopiptra’s free video newsletter (AND free webinar invitations!) here.