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Implications for Traders

Tobi

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As traders, there are many ways that you can apply the knowledge of seasonality to improve your trading. For example, if you are trading the GBP/USD in the month of September, as a longer term trader you can look for opportunities using fundamentals or technicals to buy the GBP/USD or to go in the direction of the seasonal trend. As a shorter term trader, you can reduce your holding period if you are taking a trade that is against the seasonal trend or, like longer term traders, you can focus on primarily looking for long GBP/USD trades. Although seasonal patterns do not duplicate themselves 100% of the time, following seasonality rather than fading it may improve your ability to find high probability trades.
 
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