The market displays human behaviors and humans are
creatures of habit leaving footprints in the data. We typically
wake up at the same time, arrive at work at the same time, go
to lunch at the same time, go on vacation the same time, and
more. Traders are no different.
Seasonality is a characteristic of price data which exhibits
consistent and predictable movement that recurs every
calendar year. Some simple examples include agriculture
harvests, holiday shopping for retail stocks, or higher utility and
energy prices in the colder winters. These repeatable patterns
happen on all time frames and there is finally a tool to help
traders capitalize on seasonality.