What Is a Data Pattern That Repeats Itself After a Period of Days, Weeks, Months, or Quarters?

Philipp Schaetz

February 16, 2021

Patterns that repeat themselves after a period of days, weeks, months, or quarters can be a useful way to track volatility and predict market behavior. If you have heard the term "sell in May and go away," you may already understand how this principle can be used to help you make investing decisions. A pattern that repeats itself after a period of weeks, months, or quarters is sometimes called a seasonal pattern.

The most common seasonal pattern is the January effect which refers to the tendency for stocks to rise in the first month of the year. This pattern has been observed since the mid-1800s and has been linked to the tendency of individual investors to make New Year's resolutions to invest and to sell stocks they bought at the end of the previous year at a loss (called year-end tax loss harvesting).

Other seasonal patterns that repeat themselves after a period of weeks, months, or quarters are the tendency for stocks to rise in the summer months, the tendency for stocks to rise in the fourth quarter of the year, and the tendency for stocks to rise on the third Friday of the month.

By identifying patterns that repeat themselves after a period of days, weeks, months, or quarters, you can improve your odds of making profitable trades. For example, if you understand that stocks tend to rise on the third Friday of the month, you can create a rule to buy stocks when stocks rise on the third Friday of the month.

The following table shows the average returns for the S&P 500 in various time periods.

Average Return Days Weeks Months Quarters Years 1.4% 0.4% 1.8% 1.5% 6.8%

Example of a Rule Based on a Data Pattern That Repeats Itself After a Period of Weeks

The chart below shows the daily closing prices for the SPDR S&P 500 ETF (SPY) between May 1, 2017 and March 29, 2018.

The following rule is an example of a rule based on a data pattern that repeats itself after a period of weeks.

Rule: When the SPY closes at a new high for four consecutive days, buy SPY.

The rule is based on the data pattern that the SPY tends to rise after it closes at a new high for four consecutive days.

Explore more

March 19, 2021
Save Marble Canyon Sign Today

https://www.change.org/p/coconino-county-board-of-supervisors-save-marble-canyon Sign this petition to ask the Coconino County Board of Supervisors to reverse the zoning permissions for the California-based developers that will enable them to bring a 162-acre resort to Marble Canyon. The Foster family has teamed up with the Hansji Corporation to bring this resort to Marble Canyon. Why is it important for this […]

Read More
March 8, 2021
The WEB DEVELOPERS: 5 TIPS AGAINST SLEEPLESSNESS

Here at Dusk Digital we know all about sleeping problems because we tend to be up late developing websites and working on client projects. We ant to pass on some of our tips to help sleeplessness! Can you relate? Sleep comes too late, waking up too early or sleep doesn't come at all. Millions of […]

Read More
March 7, 2021
The Idea of Self-Government is in the First Three Words of the Constitution. What are these Words?

It is clear that they are "We the People," not "We the States," or "We the Government," or even "We the Politicians." The Constitution was not written for Congress. It does not give Congress any powers that it didn't already have. Furthermore, it was not written for the states. The states had already delegated most […]

Read More
March 5, 2021
What is the Closest Possible Distance that she can Hold the Coin to have it Appear in Focus?

The minimum distance she can hold the coin from the lens is the sum of the focal length of the lens and the diameter of the coin. The diameter of a US quarter is 0.955 inches. The diameter of a US dime is 0.705 inches. The diameter of a US penny is 0.717 inches. Her […]

Read More

DUSK

DUSK DIGITAL

8124 N 15th Ave
New River, AZ 85087

SEO, Web Design and Online Management in Phoenix, Arizona.

© Copyright 2020 DUSK Digital LLC - All Rights Reserved
© Copyright 2020 DUSK Digital LLC - All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram