What is seasonality in stock trading?

Seasonality is the tendency for securities to perform better during some time periods and worse during others. These periods can be days of the week, months of the year, six-month stretches or even multi-year timeframes. For example, Yale Hirsh of the Stock Traders Almanac discovered the six-month seasonal pattern or cycle.

What are seasonality charts?

It’s through a feature called “Seasonality charts.” One benefit of these charts is that it allows investors to “test out” other’s claims of seasonal performance market trends. It also allows investors to potentially discover tendencies in stocks that are already in their sight.

What is seasonal investing?

Seasonal investing is all about taking advantage seasonal tendencies of certain stocks and sectors. One of the most well-known stock market adages is “Sell in May.” Bullish Bears does NOT recommend using seasonality alone as a tool to make trading and investment decisions.

What is seasonality & why is it important?

Seasonality tells us what has happened in the past, which is the historical tendency. There is certainly no guarantee that past performance will equal future performance, but traders can look for above average tendencies to complement other signals.