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Seasonal patterns are some of the most powerful and least understood forces in financial markets. Some of the very best and most successful traders in the world use seasonal and cycles patterns to win trading championships by using simple seasonal models with over 900% returns in some cases.
The markets are controlled by the collective human emotion which operates within its controlled environment. Outside forces that affect humans, therefore, has an affect on the markets. Weather and other seasonal changes can trigger market changes for better or worse. Experienced traders know that different market conditions call for different approaches to trading. Being aware of historical swings in market behavior from season to season can give you a distinct advantage.