JoymistaWhat Is Seasonality in the Markets?
Seasonality is a market’s tendency to move in a repeated way in certain months of the year, measured from past years’ data.
Explained
Seasonality shows each month’s average move and how many years it rose. It is a statistical leaning from the past, not a forecast, and any year can break it, so it is used alongside analysis, not instead of it.
Example
Example with made-up numbersIf a market rose in a given month 7 times in the last 10 years, its historical up-rate for that month is 70%, which does not mean it will rise this year.
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Open in JoymistaEducational content, not investment advice.