O'Reilly logo

New Frontiers in Technical Analysis: Effective Tools and Strategies for Trading and Investing by Paul Ciana

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 3

Applying Seasonality and Erlanger Studies

Philip B. Erlanger, CMT

Phil Erlanger Research

Seasonality is a very unique indicator. It is a measure derived from historical price action extrapolated into the future. This means that its signals are known ahead of time—in many cases, substantially ahead of time.

All financial instruments have some seasonal tendencies. These tendencies are derived from a plethora of fundamental factors, known and unknown, that recur at specific time periods. A seasonal cycle is a representation of the directional tendencies of a security or index at specific times. In the following discussion, the focus is on seasonal cycles based on the calendar year.

All the thin lines in Figure 3.1 look like random streams ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required