Seasonality
Just as seasons come and go every year
commodities and all financial instruments
run to there own seasonal patterns.
Patterns that can be studied and assessed to assist
the knowledgeable trader to trade successfully.
In WD Gann's book How to Make Profits in Commodities page 253.
He Lists the months in which the greatest number of
highs or lows had been reached for Coffee.
January was the clear winner for Highs with 10.
March and July scored for Lows with 6.
The original copywright for this book was 1942
The visual information provided by the first chart may suggest
differences but the significance of certain dates still holds true.
Anyone who tells you to blindly follow a seasonal pattern to
make your fortune is a fool.
Study a chart of the 1994 Coffee market against
the above seasonal tendencies you will then start
to understand how to use seasonals successfully.
"Every battle is won
before it is fought."
Sun Tzu
Remember the 50% rule
in relation to action after
the formation
of tops.
Read pages 269 & 36.
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