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Seasonality Chart

By LuxAlgoApr 2, 2023

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Seasonality Chart rebuilds your symbol's typical year as a single curve. It averages the price change recorded on each calendar day, across a chosen span of years, into seasonal indexes - the core construction behind seasonality tools - and plots the result from January through December, so recurring stretches of strength and weakness stand out at a glance. Because the indexes are built from daily price changes, the chart is designed for the daily timeframe, where history runs deep enough for the averages to mean something.

How to Trade the Seasonality Chart?

  • Read the level: stretches where the curve holds above zero mark calendar days that averaged positive price change over your lookback; stretches below zero averaged negative.
  • Cumulative Sum for turning points: stacking the indexes makes the year's historically bullish and bearish phases appear as clean inflections - a daily-resolution cousin of month-of-year tendencies.
  • Linear Regression for drift: the least-squares line separates the year's underlying drift from the seasonal wiggles around it.

Calendar folklore - the January Effect, the Santa Claus Rally, the Mark Twain Effect - grew from exactly this kind of study. The chart lets you check whether your instrument actually honors any of it before you lean on an adage.

Seasonality Chart Settings

  • Lookback (Years): how many years feed the calculation; more years smooth the curve, fewer emphasize the recent regime.
  • Cumulative Sum: displays the running total of seasonal indexes instead of raw values.
  • Use Percent Change: measures each day in relative (percentage) terms rather than absolute points.
  • Linear Regression: fits a least-squares line through the seasonal results.

Frequently Asked Questions

Why does the Seasonality Chart need a daily timeframe?

The seasonal indexes are averages of daily price changes, so the daily chart supplies the intended data density. Shorter timeframes can run short of history, thinning the sample and weakening the averages.

How is this different from the Seasonality Widget?

The Seasonality Widget buckets history by hour, weekday, month, or day of year and reports a statistic per bucket. Seasonality Chart is the continuous view: one averaged path for the whole year, with cumulative and regression overlays.

How can I start using the Seasonality Chart?

Free, through the LuxAlgo Library - and it runs in Quant, LuxAlgo's AI, directly from this page if you want to explore your market's seasonal profile right away.

Free indicator

Get free access to this indicator on the platforms below.

TradingView
NinjaTrader
MetaTrader 4/5
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