Our seasonal charts show the fifteen-years statistical tendency of a commodity, a currency or an other instrument to go up or to fall, in a specific period of the year; we consider this regularity true for the current year until it fails, and if it does than we try to formulate brand new hypothesis for the year seasonal tendency that can help us to forecast the next high-low sequence.
In chart below you can observe the 2014 Australian Dollar Seasonality with an highs/lows forecast. The red lines represent possible tops/sells for the year and blue lines bottom/buy zones.
It's easy to see how the seasonality worked quite well for the first part of the year, catching most of the major tops/bottoms and providing great alert zones, conversely in the second part of the year started to diverge sharply. Our tool can provide a map for the year but it must be used with multiple confirmations in order to avoid poor positions exclusively based on past movements. Generally when the price starts to diverge from the historical trend we re-calculate a brand new model that shows the new possible highs-lows areas.