Seasonal Extreme Zones

True Seasonal Overlay Chart with Historical Bias
📊 Overview
This innovative Pine Script indicator combines true seasonal overlay visualization with historical bias analysis to provide traders with powerful seasonal trading insights. Unlike traditional seasonal charts that display years chronologically, this indicator overlays multiple years on the same seasonal axis (January-December) for direct pattern comparison.
🎯 Key Features
📈 True Seasonal Overlay

Multi-year Performance Lines: Display 2022, 2023, and 2024 performance on the same seasonal timeline
Year-to-Date Calculation: Each year starts at 0% on January 1st, showing cumulative performance
Real Seasonal Comparison: All years aligned to the same calendar position for accurate pattern recognition
Customizable Display: Toggle individual years on/off as needed

🔍 Historical Bias System

Configurable Timeframe: Analyze 5-25 years of seasonal data
Market-Specific Data: Realistic seasonality patterns for each asset class
Smart Bias Calculation: Adjusts extreme values based on historical depth
Automatic Inversion: Handles inverse pairs (JPY, CHF, CAD, DXY) automatically

💹 Multi-Asset Support

Forex Pairs: EURUSD, GBPUSD, USDJPY, USDCHF, AUDUSD, USDCAD, NZDUSD, DXY
Commodities: Gold, Silver, Crude Oil, Natural Gas, Copper, Agricultural products
Indices: DE40 (DAX), SPX500, NASDAQ100, US30, UK100, Nikkei, ASX200, EUROSTOXX50

🛠️ How It Works
Data Collection

Price Tracking: Captures January 1st starting prices for each year
Performance Calculation: Calculates year-to-date percentage performance
Seasonal Mapping: Maps each data point to its corresponding seasonal day
Array Storage: Stores performance data in organized arrays by year

Seasonal Overlay Logic

Interpolation: Finds nearest seasonal performance for current calendar position
True Overlay: Displays all years simultaneously on the same seasonal axis
Pattern Recognition: Enables direct visual comparison of seasonal behaviors

Historical Bias Engine

Asset-Specific Data: Uses realistic seasonal probabilities for each market
Years Adjustment: Moderates extreme values based on historical timeframe
Bias Calculation: Generates percentage-based seasonal bias (0-100%)
Signal Generation: Creates Strong Bull/Bear signals based on thresholds

📊 Visual Elements
Plot Lines

Blue Line (2024): Current year performance - thick line, most prominent
Red Line (2023): Previous year comparison - medium thickness
Purple Line (2022): Two years ago reference - medium thickness
Orange Line (Historical Bias): Long-term seasonal bias - thick, distinct

Threshold Levels

Strong Bull Line: Configurable bullish threshold (default: 70%)
Strong Bear Line: Configurable bearish threshold (default: 30%)
Neutral Line: 50% reference level
Zero Line: 0% performance reference

Background Colors

Green Background: Strong Long Bias periods
Red Background: Strong Short Bias periods
Transparent: Neutral periods

🎯 Trading Applications
Pattern Recognition

Seasonal Consistency: Identify repeating seasonal patterns across years
Divergence Analysis: Spot when current year deviates from historical norms
Trend Confirmation: Use seasonal bias to confirm directional trades

Bias-Based Trading

Strong Long Bias (>70%): Favor long setups, avoid shorts
Strong Short Bias (<30%): Favor short setups, avoid longs
Neutral Zones (30-70%): Focus on technical analysis over seasonal bias

Risk Management

Seasonal Headwinds: Reduce position sizes during unfavorable seasons
Seasonal Tailwinds: Consider larger positions during favorable periods
Entry Timing: Use seasonal overlay to time entries within trend direction

⚙️ Configuration Options
Display Settings

Year Selection: Toggle 2022, 2023, 2024 displays individually
Historical Bias Years: Configure 5-25 years for bias calculation
Threshold Levels: Customize Strong Bull/Bear threshold percentages
Visual Elements: Toggle table, backgrounds, and bias line

Asset Selection

Forex Group: Select from major currency pairs
Commodity Group: Choose from metals, energy, and agricultural products
Index Group: Pick from major global stock indices

Color Customization

Year Colors: Customize colors for each year line
Bias Color: Set historical bias line color
Background Colors: Configure Strong Bull/Bear background colors

📋 Information Panel
The indicator includes a comprehensive information table showing:

Current Asset: Selected instrument with inversion status
Monthly Status: Current month with bias direction and strength
Bias Percentage: Numerical historical bias value
Configuration: Active years and threshold settings
Seasonality Note: Indicates if data is inverted for certain pairs

🚀 Unique Advantages

True Seasonal Comparison: Unlike traditional charts, enables direct year-over-year seasonal comparison
Market-Specific Data: Uses realistic seasonal patterns based on actual market drivers
Automated Handling: Manages complex calculations and data interpolation automatically
Flexible Timeframes: Adapts historical bias calculation to user preferences
Professional Visualization: Clean, intuitive display suitable for all experience levels

💡 Best Practices

Combine with Technical Analysis: Use seasonal bias to filter trade direction, not as standalone signals
Consider Market Regime: Factor in current market conditions and volatility
Multiple Timeframe Analysis: Confirm seasonal bias on different chart timeframes
Risk Management: Always use appropriate position sizing regardless of seasonal bias

This indicator transforms seasonal analysis from static historical data into dynamic, actionable trading intelligence through innovative visualization and robust bias calculation methodology.