Seasonal cycles

A seasonal cycle is a repetitive, predictable pattern in the series values.

Figure 1. Seasonal cycle
Seasonal cycle

Seasonal cycles are tied to the interval of your series. For instance, monthly data typically cycles over quarters and years. A monthly series might show a significant quarterly cycle with a low in the first quarter or a yearly cycle with a peak every December. Series that show a seasonal cycle are said to exhibit seasonality.

Seasonal patterns are useful in obtaining good fits and forecasts, and there are exponential smoothing and ARIMA models that capture seasonality.