How to Create Seasonal Market Charts Using Python

Creating Seasonal Charts to Look For Patterns in Equity Markets

Seasonal charts, also known as seasonal patterns or seasonal analysis, are graphical representations of historical price or performance trends of a particular asset, such as a stock, commodity, currency, or market index, over a specific time period.

These charts are used by traders, investors, and analysts to identify recurring patterns and trends that tend to occur during certain times of the year or at specific intervals. This article will show how to create a seasonality chart on the S&P 500 and how to interpret it.

Seasonality and Patterns in Financial Markets

Seasonal charts focus on analyzing price or performance data over different seasons, months, or weeks within a year. This analysis is based on the idea that certain assets or markets exhibit repetitive patterns or behaviors during particular times of the year.

To create a seasonal chart, historical price or performance data for an asset is collected and organized by time periods (e.g., months or quarters) over multiple years. This data is then averaged or otherwise adjusted to create a clear visual representation of seasonal trends. Seasonal charts typically take…