Financial astrology
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Financial astrology (also known as business astrology, economic astrology, and/or astro-economics) is the practice of relating/correlating the movements of celestial bodies to events in financial markets. Financial astrology can be applied in the following ways:
- 1. Predicting major economic trends as they relate to certain cycles, specifically on the cycles of outer planets
- 2. Helping an investor find the best industry to be in for a particular period of time based on major planetary configurations
- 3. Identifying the best stocks to own during a particular time period
- 4. Identifying the best date and time to buy or sell a stock
- 5. Correlating the Astrological aspect to the movement of stock market in day trading.
The practice carries the implicit belief that astrology is valid and influences human behavior. Although astrology is generally regarded in mainstream Western thought as having no logical basis, advocates of the efficient market hypothesis would make the same claim with respect to most forms of fundamental analysis and technical analysis. Although few technical analysts use financial astrology, a few, including the well known and lauded technical analyst W. D. Gann combine technical analysis and financial astrology in their work. This is continued today by popular figures such as Arch Crawford[1].
There is the concept that astrological aspects link to the mood of the trader, and there are various sites on the net where the minute by minute aspects made by planetary aspects are correlated to the movements of the markets. The correlation is not perfect, but still give some indication to trained observer. For example statistically it has been shown that in moments, such as a 30 minute period, when there are two or more hard astrological aspects, stock market go down more easily. The converse is true, when there are more soft astrological aspects the potential for markets to go up is greater. Then there are times when there are none of the recognized astrological aspects made, and the stock market stay flat. These periods of very short term, typically between 5 to 45 minutes long, but can be accurately correlated with the exact astrological aspects of the planets. See the work of Ali Mostofi of Stockstars, where archives of results and detailed explanations can be seen.
Because the efficient markets hypothesis holds that securities trading is random, some traders can be expected to make money and some can be expected to lose it. Those who make money may believe that it is because of their unique system, like market astrology or technical analysis, when their randomly generated performance simply fell on the right end of the normal curve.
