The Use of Seasonal Bias

By Lawrence

Teenage girl enjoying winterI was asked many times if I use seasonal bias for my trading. The answer is yes. It is quite obvious from my real-time chat that I have certain expectations from time to time what a market should do if it follows the seasonal pattern.

Although seasonal charts are based on higher timeframes (i.e. at least daily), they are not price patterns and do not dictate the moves in a market like the swing patterns or basic chart patterns. Seasonal behaviour of a market is a reference point where you can be aware of it so that you would not be surprised by it.

It is a tool useful for time projection purpose. e.g. if you trade options

It is also useful where you can be more protective with your positions when you are trading against a strong seasonal bias.

I will have the seasonal charts for various markets linked to their own premium signal pages so that premium members can refer to the charts easily.

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