For this exercise, I would like you to check out the Seasonal Dates on Wesfarmers (WES.ASX). I have included the list below, but you have a copy of this included with your handouts from the webinar. Start from the January, 2015 Seasonal Date, and work your way through these dates until you get to June, 2016. You should be familiar with this section of the market because we have already been over it while studying our Ranges work. When you are learning these techniques, it is extremely helpful if you study them all over the same period of the market. This way, you get to see how they all work together.
Use a Vertical Line in ProfitSource to mark the day of the Seasonal Date, then see if the market turned around that time. This exercise is only an approximate – keep in mind that the Seasonal Dates vary slightly from year to year. Also, remember that markets won’t always turn right on the Seasonal Dates, so don’t get discouraged if they don’t appear to be working for a time.
Finally make a note as to what happened on the Seasonal Date. Did the market turn? Was it a major or minor turn? Was it at least a weekly swing top or bottom? Was the turn exactly on the day, or two or three days out?
