Financial Astrology

This chapter elaborates different aspects of financial astrology. Lunar cycles are subject to the laws of accumulation and redistribution. The first half of the lunar month is a process of accumulation in which the market grows. The second half of the lunar month is often one of redistribution and weakness. This pattern works well in a rising market, but can become a trap if the market enters a bear phase, with shares falling sharply. Therefore, if there is no accumulation in the first half of the lunar month, traders should be alert to the fact that there may be a change in the larger trend. To test the observation that lunar cycle coincides with swing tops and bottoms, it is suggested that a momentum indicator, such as stochastics, be included. The buy signal in the new moon phase should coincide with a reading below 20 in the stochastics.