THE CONCEPT BEHIND THE SEASONAL SCREENERS
The concept of Seasonal and/or Cyclical Trading is based on the high regularity of movement amongst securities within certain time-frames in a trading year or within economic cycles.
All it takes is an idea such as the seasonal behaviour of retail stocks during the holiday season (year-end). If you thought that there was a reliable uptrend during the holiday season amongst retail stocks, you only need to confirm it by scanning for it and looking for the high probability securities.
This usually works well most of the time. The times when the trade goes sideways is usually due to macroeconomic news or unforeseen economic or political events. So it is always wise to lead your research with macros instead of simply relying on statistics to make your profit.
The crux of using the Seasonal Screeners is to reduce the risk of taking a trade blindly, based purely on technicals. Knowing the odds is always an advantage. And in this case, if the odds are favourable with a high probability, then you’re trading something that is cyclically reliable. You only have to eliminate the macro threat and you’re good to go.
The free screeners can be found at Pattern Trader™ Tools.
Simply sign up for an account and start screening!
The two free screeners are;
- The Seasonal Summary Table is a collection of 13 U.S. sectors and industries plus its three benchmark ETFs;
- DIA : SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA)
- SPY : SPDR S&P 500 ETF Trust (NYSEArca)
- QQQ : Invesco QQQ Trust (NasdaqGM)
- The Seasonal Stock Screener gives the user the monthly and weekly reliability factors as well as monthly and weekly average returns (over specified periods of time) for stocks listed in the U.S. market.
Be sure you understand the workings behind each tool by reading the given links above. It is never wise to jump into something without first fully understanding everything about it.
Join us at our Facebook discussion group: Pattern Trader™ Tools on Facebook
Happy Hunting!