Stock Market Seasonality Charts are a very good technique to optimize your timing for entry and exit.
Seasonal patterns in the stock market are often caused by economic cycles. For example, when the economy is doing well, people tend to spend money on big ticket items like cars and houses. This boosts demand for stocks that are tied to those purchases. As the economy improves, people start saving again, which causes demand for stocks tied to savings to rise.
BUT, Be Careful.
Looking at a simple seasonal chart is not enough!
You need a backtest and KPIs to see the quality of the seasonal pattern.
The quality of your analysis determines your success.
Would you like more Seasonality Stock Charts. Our Seasonality Chart Analyzer offers free analyzable instruments. As a subscriber to our Seasonality Essential service, you have access to all instruments on our platform.
The best-known seasonal pattern on the stock market is: "Sell in may and go away but remember to come back in september!"
Prices rise much more from October to April than from May to the end of September.
Microsoft almost always publishes better results than forecast in Q3.
This creates a stable, recurring pattern with a high hit rate from which you can profit.
YUM! Brands, Inc. is the world's largest operator of quick-service restaurants.
Regularly, the share price rises for three months from the beginning of March.
The hit rate of this seasonal pattern has a hit rate of over 95%. The Sortino Ratio is very high, which suggests a very high and consistent performance.
The seasonal chart of Eli Lilly and Company is particularly strong in the last 2 months of the year.
The price increases are regularly generated by positive corporate earnings.
The positive seasonal pattern can also be found across the healthcare sector.
Recurring, seasonal trends yield the same gains in a few weeks as normal investments do in a year.
You need a backtest to see if the recurring pattern has produced stable profits in each period and what drawdown has occurred.
Other statistical key figures and charts show qualitative details of monthly, weekly and weekday performance.
For the optimal time to buy, we show seasonal intraday charts for instruments with high trading volume.
If you want to use seasonality profitably, you need more than just a seasonality chart.
Our Seasonality Chart Analyzer shows you all relevant data for your analyses and your success.
Use the best seasonal patterns for your success.
We help you find recurring patterns with annual hit rates of over 90%. The Seasonality Screener shows you the best recurring trends for stocks, ETFs, currencies (Forex), commodities and futures. You can find profitable trading and investing times with just a few clicks.
We help you to create your own seasonality charts according to your needs with a few clicks at a high professional level. If you want to use a seasonal pattern profitably, the quality of the seasonality is crucial. Looking at a simple seasonal chart is not enough for this!
Compare the seasonal average performance of different indices, sectors, commodities, currencies and cryptos. Our unique tools help you compare quality trades and investments. A comparison makes it easier for you to identify the best trade from different instruments.
All three Seasonality tools are part of the Seasonality Essential subscriber offer.
If you're looking for an investment strategy that will help you beat the market year after year, there's no better place to start than with seasonal investing. Seasonal investing is based on the idea that certain industries do better during certain times of the year. For example, the housing industry tends to perform better in the spring and summer months because more people are buying homes.
There are many studies the seasonal effect is well described. You can find a list of studies in the following post What Is Seasonility? How It Works.
Price developments of stocks, currencies and commodities are the result of economic or corporate developments. Economic and corporate developments repeat themselves and automatically generate recurring (seasonal) patterns. There are also weather-related reasons that influence the demand for commodities or products.
There are two main reasons why you should consider seasonal investing. First, it helps you avoid making costly mistakes by avoiding investments that aren't performing well at the moment. Second, it gives you the opportunity to make money when others are losing money.
There are many different reasons for the right time to buy and sell. Using seasonal effects is a good choice and has long been established in the financial industry. To identify the right time to buy and sell you just need the right platform, which will search for the opportunities and allow you to analyze them.
If you're looking to invest in stocks, there's no better time than right now. In fact, the first three months of each year tend to be the strongest for the stock market. This is because companies typically report earnings during these months, and those earnings will help determine whether the company is going to perform well or poorly.
While the stock market tends to do well in the spring and fall, it tends to do worse in the summer. Why? Because people spend more time outdoors and less time inside watching TV and playing video games. As a result, fewer people are buying new products and services, so businesses aren't making as much money.
Seasonality can improve the timing of their investment and trading activities. Analyze strong recurring trends and find the best opportunities with our Seasonality Screener.