Seasonal charts graph the historical performance of each stock to help forecast future performance. It examines how a stock has performed in the past and how it will likely fare under different conditions. This tool may help you decide whether to be bullish or bearish. It also estimates how long uptrends and downtrends are likely to last. It approximates where the tops and bottoms are likely to occur so that you can set up Buy and Sell Stops. Seasonal charts also determine which price ‘blips’ are indicator whipsaws that might produce trading losses.
Seasonal Charts by Tradespoon
Tradespoon’s Seasonal Charts show the 10-day Support and Resistance levels and provides predictions on whether the stock is going to be in an uptrend, downtrend, or sideways trend. It also helps determine trend predictions for 10 to 75 days, find correlation between Current Price Action and Historical Prices, and can be used to determine trend and Resistance Levels for ETFs.
Many stocks follow certain seasonality based on weather or based on the geo-political events. Some of them tend to sell-off in summer or make new highs in October or December. So, finding a correlation between Current Price and Historical Price may help to analyze if the stock will follow its historical patterns or not. Tradespoon’s Seasonal Chart helps to determine the Trend and Resistance levels of all the 80 odd stocks that trade on AMEX Exchange. It also monitors all stocks that trade at NASDAQ and New York Stock Exchange.
Seasonality and predictions can provide insight into how stocks will trade in the future. In the given example, the green line shows you Seasonality and the orange line shows the Tradespoon prediction for the next 10 days. This can help you find the most Optimal Entry or Exit Points when getting into a position or getting out of the position.