How To Set Up A Seasonality Chart In Eikon
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The biggest benefit of a seasonality chart is simply helping you to contextualize the potential for upcoming trade ideas based on the seasonal performance.
A seasonality chart provides context on whether there are some seasonal considerations to keep in mind for various assets.
Now, what the seasonality chart will do is it'll show you the performance of various instruments on the time horizon of your choosing, whether you're going to look at the last year, the last 10 years, five years, two decades, etc. There are other similar services to this one.
There's one obviously in Eikon, but they do normally charge substantial additional amounts for that information. So it is great having it part of the Eikon platform already. So how exactly is this type of information useful? Well, suppose that you are, let's say it's the first week of November, right? You're in the first week of November and the S&P has been ramping up to a new high and you want to know whether it might be a good idea to start looking for some short opportunities. Well, in that case, it's very handy and useful to know that from a seasonal point of view, November has actually been one of the very best months for the S&P with only 19% of losing months and over 80% of winning months in November.
That might mean that even though you want to be looking for a short, November might not be the month that you want to do that, just given that seasonal out-performance in something like the S&P. Similarly taking a look at something like the Aussie Yen, for example.
Let's say that it's August and you want to buy the Aussie Yen for whatever reason, it's very useful to know that over the past 20 years, two decades, August has been the worst performing month for the Aussie Yen in terms of the amount of losing months we've had. So that might be a reason for you to, okay, you know, if you want to buy it make sure that you really have your analysis correct because from a seasonal point of view, there might be more downside in store for something like the Aussie Yen.
It's of course, very important to keep in mind that seasonality performance is not indicative of future performance, right? So, you still need to keep the current drivers for that particular asset in mind. So this information doesn't mean that you simply buy the S&P, for example, in November, and you simply sell Aussie Yen in August, you know, and use these patterns as just trade ideas in their own right. Your own usual fundamental and sentiment analysis will still be the first thing that you use to try and establish whether there are reasons to buy or sell the currency or the asset, but the seasonality aspect can shed some valuable insight from a timing point of view, to show that whether, you know that timing for that trade might not be optimal, and whether some patience might be required for that particular asset.
So how to set this up is fairly, fairly easy. So let me just show you how to do that.
So from your home button you're simply going to go down to the App Library. If you search for seasonality chart here or seasonality app here you won't normally find it. So just go to your App Library. Once you open that up, in the search bar, just type in seasonal, it should pop up immediately. There we go, so seasonality chart, and you can simply click to open that. And what you'll see is you're going to see a bunch of lines.
It won't be the similar type of heat map layout, initially, like this one, you'll see it open up with a bunch of line graphs, but I'll show you how to just quickly edit that. It is very simple and very easy. It's on the Aussie Yen right now because that's the last one that I had a look at, so you might be opening up with another asset. I'm not sure what it might be. So just do keep that in mind.
You can choose the instrument that you want to view from the instrument search bar and then over here you can select the type of view that you want. You'll see this first one is you can change the line type. This one is the heat maps, or show heat map. And this one is a chart this one shows you the chart with the data.
But the one that we like to use is the heat map. And that's that little icon. If we select that, you can see that very, very similar layout that we normally use, just makes it a lot more visual and easy to spot it this way.
So hope that helps Nick. Any other questions don't hesitate to let us know.
-----
If you find this content helpful, you’ll love Financial Source.
There’s a link below were you can learn more about it
https://financialsource.co
Why Professional Traders Use A Forex News Feed To Trade - https://youtu.be/EQnphXBffBQ
Always stay on the right side of the market and know what to trade every day. Sign up for a FREE TRIAL:
https://financialsource.co
------------------------
The biggest benefit of a seasonality chart is simply helping you to contextualize the potential for upcoming trade ideas based on the seasonal performance.
A seasonality chart provides context on whether there are some seasonal considerations to keep in mind for various assets.
Now, what the seasonality chart will do is it'll show you the performance of various instruments on the time horizon of your choosing, whether you're going to look at the last year, the last 10 years, five years, two decades, etc. There are other similar services to this one.
There's one obviously in Eikon, but they do normally charge substantial additional amounts for that information. So it is great having it part of the Eikon platform already. So how exactly is this type of information useful? Well, suppose that you are, let's say it's the first week of November, right? You're in the first week of November and the S&P has been ramping up to a new high and you want to know whether it might be a good idea to start looking for some short opportunities. Well, in that case, it's very handy and useful to know that from a seasonal point of view, November has actually been one of the very best months for the S&P with only 19% of losing months and over 80% of winning months in November.
That might mean that even though you want to be looking for a short, November might not be the month that you want to do that, just given that seasonal out-performance in something like the S&P. Similarly taking a look at something like the Aussie Yen, for example.
Let's say that it's August and you want to buy the Aussie Yen for whatever reason, it's very useful to know that over the past 20 years, two decades, August has been the worst performing month for the Aussie Yen in terms of the amount of losing months we've had. So that might be a reason for you to, okay, you know, if you want to buy it make sure that you really have your analysis correct because from a seasonal point of view, there might be more downside in store for something like the Aussie Yen.
It's of course, very important to keep in mind that seasonality performance is not indicative of future performance, right? So, you still need to keep the current drivers for that particular asset in mind. So this information doesn't mean that you simply buy the S&P, for example, in November, and you simply sell Aussie Yen in August, you know, and use these patterns as just trade ideas in their own right. Your own usual fundamental and sentiment analysis will still be the first thing that you use to try and establish whether there are reasons to buy or sell the currency or the asset, but the seasonality aspect can shed some valuable insight from a timing point of view, to show that whether, you know that timing for that trade might not be optimal, and whether some patience might be required for that particular asset.
So how to set this up is fairly, fairly easy. So let me just show you how to do that.
So from your home button you're simply going to go down to the App Library. If you search for seasonality chart here or seasonality app here you won't normally find it. So just go to your App Library. Once you open that up, in the search bar, just type in seasonal, it should pop up immediately. There we go, so seasonality chart, and you can simply click to open that. And what you'll see is you're going to see a bunch of lines.
It won't be the similar type of heat map layout, initially, like this one, you'll see it open up with a bunch of line graphs, but I'll show you how to just quickly edit that. It is very simple and very easy. It's on the Aussie Yen right now because that's the last one that I had a look at, so you might be opening up with another asset. I'm not sure what it might be. So just do keep that in mind.
You can choose the instrument that you want to view from the instrument search bar and then over here you can select the type of view that you want. You'll see this first one is you can change the line type. This one is the heat maps, or show heat map. And this one is a chart this one shows you the chart with the data.
But the one that we like to use is the heat map. And that's that little icon. If we select that, you can see that very, very similar layout that we normally use, just makes it a lot more visual and easy to spot it this way.
So hope that helps Nick. Any other questions don't hesitate to let us know.
-----
If you find this content helpful, you’ll love Financial Source.
There’s a link below were you can learn more about it
https://financialsource.co
