In this article, I'm going to talk about FX seasonality cycles
and how they can improve your trading activity and why it should not be ignored. There is no mystery that the world is full of cycles and we're governed by them and the financial market are not exception of this rule. The majority of traders will either use technical analysis, fundamental analysis or a combination of both. But the seasonality cycles
will bring in a new dimension in which you can analyse the market. The time element
such as the time of the day, the day of the week, the month of the year could also play a big role in how certain FX pairs may behave. So when you focus your attention purely on price and time without the noise of indicators you may notice that some pattern shows up during certain time and this patterns are known as seasonality. Seasonality are a predictable change in price that repeats every day, week, month, year at the same period in time.
This seasonality cycles will only give you the tendency
of an particular currency pair to bottom or top or rally or fall, at certain point in time. The seasonality is just an average
so in this regard it's better not to use it in isolation but rather in…