How to take advantage of the seasons when choosing a currency pair

Most Forex traders look at intraday charts by looking at a 15 minute, 5 minute, 2 minute or 1 minute chart to decide when to enter trading. Many trades have a market forecaster that is often overlooked that will improve your chances of success. This is the chapter on predictive trading. By learning how to trade seasonally and how seasons affect currency pairs, you will add another winning strategy to your portfolio and improve your trading success rate.

What You Need to Know About Seasonal Trading

People generally have a common way of looking at graphs, and this is in chronological order. In general, a chart provides valuable information for Forex investors up to the minute about the movement of the currency for years, months, weeks. However, this is not the only way to observe currency charts: another way is to observe them seasonally.

Seasonal trading

This Forex strategy is also called Forex seasonal charts or patterns, what does it mean? Seasonality is based on the fact that the movements in the Forex market follow specific patterns throughout the year. Over the years, it has been observed that a trend has generally followed a currency. In this regard, we can set certain times in a year when a currency pair is expected to be higher or lower. Opportunity to make a profit by combining seasonal patterns with your forex strategy.

Seasonal patterns in EUR and USD

Is there a seasonal regularity in EUR and USD? By observing EUR / USD futures, we can expect either stability or a decline, indicating that we can identify predictable turning points at certain times of the year. For example, we can predict that until March, the EUR / USD will fly after a rapid decline in the second half of February. We can expect EUR / USD relative stability until April and a downward spiral from August to the second half of September.

As we have seen, seasonality can be quite impressive, but that does not mean that these patterns cannot be changed without warning for years. One thing to note is that you should not rely only on the seasonal model when trading Forex. It is best to use seasonally to tow the technical analysis.

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