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A Trader's Guide to Financial Astrology: Forecasting Market Cycles Using Planetary and Lunar Movements



A Trader's Guide to Financial Astrology: Forecasting Market Cycles Using Planetary and Lunar Movements

Larry Pasavento, Shane Smoleny

ISBN: 978-1-118-36939-5 January 2015 240 Pages


Look to the stars for a whole new approach to market cycle forecasting

A Trader's Guide to Financial Astrology is the definitive guide to trading market cycles based on astrological data. Written by a highly-respected technical analyst, this book makes the connection between the movements of planets and the volatility of the market. Readers can draw upon one hundred years of historical data as they learn how to spot correlations from the past, and refer to planetary and lunar data for the next five years as they shape their own strategy. The book covers the principles of astrological forecasting as applied to the financial markets, explaining what to watch for and how to interpret planetary and lunar activity, plus expert insight on everyday practical application.

A study by the Federal Reserve Bank of Atlanta determined that the U.S. stock markets tend to be negatively affected by geomagnetic storms, and the Royal Bank of Scotland demonstrated that a trading system based on the phases of the moon would have outperformed the market. A Trader's Guide to Financial Astrology shows traders how to tap into the planetary forces that influence market activity. Readers will:

  • Learn how planetary and lunar movements relate to the financial markets
  • Draw upon 100 years of historic correlations and five years of forecast data
  • Forecast long-term and short-term activity based on planetary relationships and lunar movement
  • Enter the markets at key turning points, using price patterns and other tools

When integrated with technical trading patterns, astrology can be an effective way of shifting perspective and approaching the market differently. For traders who have always wanted to know what to do when Mercury is in retrograde or the moon is new, A Trader's Guide to Financial Astrology provides information and insight from a leading market educator.

Foreword ix

Preface xi

Acknowledgments xiii

Chapter 1: Introduction 1

Introduction 1

Purpose of the Book 2

Brief Historical Background 3

Theory of Financial Astrology 4

Summary 5

Chapter 2: Planets 7

Introduction 7

Planets 8

Summary 20

Chapter 3: Zodiac Signs 23

Introduction 23

Zodiac Signs 24

Determining the Meaning of Signs 26

Precession 33

Discovery of New Constellations 35

Summary 35

Chapter 4: Planetary Position Coordinate System 37

Introduction 37

Planet Positions 37

Summary 43

Chapter 5: Transiting Aspects 45

Introduction 45

Transiting Aspects 46

Grouping Planetary Energies 48

Key Aspect Angles 49

Key Sun-Moon Aspects 61

Putting It All Together: How Astrology Works 65

Summary 65

Chapter 6: Visual Representation of Transits 67

Introduction 67

Visual Representations of Planetary Aspects and Alignments 68

Orb of Influence 71

Conjunction 72

Visual Strength of Aspect versus Peak Event 73

Overlapping Asymmetrical Aspects Flare Up 77

Retrograde Motion of Planets Making a Transit 79

Summary 81

Chapter 7: Introduction to Cycles and Transits for Forecasting 83

Introduction 83

Defining a Cycle 84

Advantages and Disadvantages of Cycles 88

Use of Transits to Forecast Markets 89

Summary 91

Chapter 8: Testing the Effect of the New Moon on the Market 93

Introduction 93

Case Study: The Sun and the Moon 94

How an Efficiency Test Works 95

Efficiency Test: Dow Jones Behavior around the

New Moon from 1885 to 2013 96

Walk Forward Analysis 99

Summary 113

Chapter 9: Verification of Planetary Meanings and Transits 115

Introduction 115

Verification of Planetary Meanings Using Cycles 116

Verification of Transits in Financial Markets 126

Past Issues with Accuracy and Financial Markets 130

Summary 130

Chapter 10: Financial Forecasting Using Solar Cycles 133

Introduction 133

Types of Cycles 134

Summary 144

Chapter 11: Financial Forecasting Using Lunar Cycles 145

Introduction 145

Moon versus Sun Cycle (Angle) for Dow Jones since 1885 146

Moon versus Sun Cycle (Angle) Matched to Angle Key Turning Points 147

Moon versus Sun Cycle (Angle) for Dow Jones since 2009 with Quantitative Easing 148

Moon versus Sign Cycle for S&P 500 since 1950 149

Moon versus Sign Cycle for S&P 500 since 2009 150

Conclusion 153

Appendix A Full Moon, New Moon Dates 155

Appendix B Bradley Barometer 159

Appendix C Sun/Moon Lunar Cycles 169

Appendix D It’s Not What You Think, It’s How You Think! 201

Index 215