There are 3 major seasonal tendencies in the US stock market

[goldendragon-fx]

Using seasonal tendencies is the way to daily bias, then you use SMT divergences to confirm that seasonal direction.

There are 3 major seasonal tendencies in the US stock market:

Bullish Feb - April (Spring)

Bearish May - August (Summer)

Bullish Oct - Nov (Fall)

Then you pair this with SMT divergence, where one of the 3 averages fails to fall in line with the others.

For example:

During February, S&P and DOW make higher lows on the higher time frame, at the same time NASDAQ makes a lower low taking out sellside liquidity.

This shows underlying accumulation in S&P/DOW and a crack in correlation on the overall averages.

This is smart money showing its hand in the market, confirming the bullish seasonal tendency.

Then after that you have your weekly/daily bias for the entire Spring until May.

But understand the seasonal tendencies don’t always pan out, that’s why you need to use them with SMT divergence for confirmation.]
Using seasonal tendencies is the way to daily bias, then you use SMT divergences to confirm that seasonal direction.

There are 3 major seasonal tendencies in the US stock market:

Bullish Feb - April (Spring)

Bearish May - August (Summer)

Bullish Oct - Nov (Fall)

Then you pair this with SMT divergence, where one of the 3 averages fails to fall in line with the others.

For example:

During February, S&P and DOW make higher lows on the higher time frame, at the same time NASDAQ makes a lower low taking out sellside liquidity.

This shows underlying accumulation in S&P/DOW and a crack in correlation on the overall averages.

This is smart money showing its hand in the market, confirming the bullish seasonal tendency.

Then after that you have your weekly/daily bias for the entire Spring until May.

But understand the seasonal tendencies don’t always pan out, that’s why you need to use them with SMT divergence for confirmation.