There are seasonal patterns, which are mostly associated with commodities. As for the foreign exchange market, it also has its calendar patterns. They have a great impact on trading, and that's why, traders can take advantage of them for improving their odds for success and benefits.
 Monthly Patterns
In general, there are three pairs of currency. They have traded in the same direction during a particular month. AUD/JPY has risen in January, while USD/CAD has fallen in June and USD/JPY has dropped in August. In each case, the moves have been important. So, you see that almost all currency pairs have one or more months during which they have a directional tendency. Let's take a look at USD/JPY as an example.
If talk about USD/JPY, on average, it has declined over 325 points each year since 1999 in the month of August, which translates to 2.80%. However, while the percentage does not seem extraordinary, when one takes leverage in to consideration, it is a different story.
Weekday Patterns
However, there are also patterns of behavior which are based on weekdays. But it is a little more complex. It is very important to apply a secondary condition, which can be finished using the month. Patterns which take place on certain weekdays during a given month will be the result.
GBP/USD on Mondays in December can be a great example of this kind of pattern. During the last month of the year since 1999 the pound has risen 73% of the time on Monday. The average move has been 40 pips. A trader who entered traded this pattern over the last seven years would have booked over 1000 pips in benefits, which translates to more than $10,000 if one took positions of 100,000 GBP/USD each time.
Trading the Patterns
There are many examples in the forex trading. Evidently, one strategy which could be employed is a simple enter-and-hold based on the pattern for a given month or weekday. That, nevertheless, does leave one open to the both in-trade draw downs. Some of them can be considerable. Moreover, patterns do not always repeat every time, and sometimes change.
Using calendar patterns to bias one's trading is an option to enter-and-hold. For instance, a day trader could look for opportunities to buy in to weakness in GBP/USD on Mondays in December. For entering in to short trades in USD/JPY, a swing trader could use short-term breakdowns.
If the trader is looking for employ forex calendar patterns, then he must use the same good risk procedures as are always needed.
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