Confluences

Monthly Return Heatmap Confluences

The Monthly Returns Heatmap is most effective when used in confluence with other technical and macro indicators:

• Trend Following: Use the heatmap to identify historically strong months and look for trend continuation signals on lower timeframes (Weekly or Daily) during those months.
• Support & Resistance: If an asset approaches a major support level during a historically strong month, the probability of a successful bounce may be higher.
• Fundamental Analysis: Combine seasonal strength/weakness identified by the heatmap with upcoming fundamental catalysts (e.g., earnings seasons, macroeconomic data releases) to build a more comprehensive trade thesis.