How To Trade Using Financial Astrology
When a company reports better-than-expected earnings, it is no guarantee the price of the
stock will move significantly, as any day trader can attest. Traders on the floor of an
exchange often slough off such reports, putting a damper on expectations. Similarly,
indicators such as volume, momentum or P/E ratios can lead investors to the wrong conclusions.
The seeming contrariness of the market leads some investors to the feeling that something
else is at work in the markets. Financial astrologers believe they know what that
It would be foolhardy to suggest that one should follow astrological
indicators solely as a basis for making financial decisions. Financial astrology should be
viewed as an adjunct to the resources of fundamental and technical analyses. While some
investors limit themselves to these traditional methods, there is a growing number of traders
utilizing astrological analysis to boost the accuracy of their trading decisions.
When technical analysis first came to prominence in the sixties, it was
scoffed at by traditional investors. It seemed incomprehensible to some traders that a stock's
price could be forecast using only the price history of the stock. Today, financial astrology
is met with the same skepticism that was once levelled against the technicians. It is likely
only a matter of time before astrological analysis receives widespread acceptance.
In financial astrology, there is a lot of talk about cycles—the 20-year
Jupiter-Saturn cycle, the 15-to-20-year Pluto cycle, the 18-year cycle of the lunar nodes, etc.
These cycles give an overview of market trends over an extended period of time and are
therefore best suited to the needs of the long-term investor. But what about the short-term
investor? What method does astrology offer to predict price levels a week or a month from
The means to short-term prediction is simpler than one might think. The short-term
indicators for a stock's price movement already exist in the form of the historical data for
that stock. It is the astrologer's task to correlate the ups and downs in the historical price
chart to astrological influences in effect at the time. It is not always easy to see the
underlying astrological patterns which affect a stock's price, but with enough patience, the
patterns can be evoked. After having done this type of analysis with numerous stocks over
several years, I am convinced there is a unique astrological makeup for each stock, much like
a birth chart, which makes it possible to accurately predict a stock's future price movement.
Once the major price reversals in the historical data have been accounted for, future price
reversals can be laid out in a prescribed pattern.
The basis for making trades astrologically is the use of a price chart, in every respect the
same as a standard stock chart, which indicates the peaks and valleys of the stock's future
price movement. Combined with fundamental and technical analyses, it becomes a powerful tool.
The advantages of knowing the major price reversals for a stock in advance are inestimable.
Through astrological methods, an investor can participate in all of the price gains for a stock
while incurring none of the losses. Through short selling or put options, he may even gain from
a stock's downward movement.
In constructing the ups and downs of a stock's movement, the astrologer must consider two
things: (1) how sharply a stock price is likely to rise or fall and (2) the duration of the move.
The angle of a stock's rise or fall is determined by the strength of the influence which brought
it about. To determine the price angle, I use an 11-point system as shown below:
An influence which positively affects the stock creates a price angle ranging from
+15° to +75°. A negative influence ranges from -15° to -75°. Neutral influences
or little activity will keep the price angle around 0. The angle is chosen by the relative
strength of the astrological influence.
The duration of a price move is determined by how long an influence affects the stock without
being interrupted by another influence or superceded by a stronger influence.
Knowing the ups and downs for a stock's price is only part of the story. A true chart of
future price movement must also contain the elements of projected growth and price trend.
Projected growth is an estimate based on the sector and industry for the stock in question. If
a stock is in the telecommunications sector and the cell phone manufacture industry, for
instance, a sector analysis according to astrological influences can estimate how much (as a
percentage) the price is likely to move up or down in a given time period. The changes in trend
are determined by the onset of those influences which most powerfully affect the stock. A sample
chart of future price movement is given below: