How to use seasonality?

Imagine it’s winter, and you know it’s going to snow. You grab your warm coat and boots because you’re prepared. That’s what seasonality is like in trading—it helps you prepare for patterns that happen at certain times of the year.

In the forex market, some currencies behave differently depending on the season. For example, during the summer, tourism might increase, boosting the value of certain currencies like the euro. Or, at the end of the year, businesses might move money around, causing unusual market activity.

How can you use this? Think of it as studying the weather forecast. Look at seasonality charts to see how a currency has performed in the past during specific months. If the British pound usually rises in April, you can plan trades around that.

But remember, seasonality is just a guide—it doesn’t guarantee anything. Combine it with other tools, like technical analysis, to make smarter decisions.

By using seasonality, you’re not just reacting to the market—you’re staying one step ahead, ready for whatever comes next. It’s like having a map for the trading year!