New Moon – Full Moon Influencing Trading

The concepts of new moon/full moon come from ancient times and they were closely watched by people of all times due to the implications regarding human behavior. Financial markets being a sum of human behaviours, it is no wonder such concepts are of interest for long term forecasters of a trading security/currency pair/equity.

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Under the recording that comes with this chapter  I will present a study I made some time ago on the eurusd pair, on the Saxobank broker, and the reason why I used that broker it was because it shows the eurusd pair since the inception in the 1970’s until present times. When doing a reasearch on a financial intrument, regardless of its nature, try to go as much as possible into the history, ideally having the whole price structure in front of your eyes, as this is the only wat to have a full picture of the characteristics of it, how price travels in time. So what I did it was that on this monthly chart that goes to the eurusd roots, I looked back in history for new moon/ full moon dates on the calendar, and tried to find a connection between the turning points on the chart, and the new moon/full moon dates around that points. The findings are the object of this recording and I just want to add that this is a simple approach, started out of curiousity initially, and then turning into something more interesting by the time the project advanced.

Conclusion for the whole astrology in trading chapter is that while we’re a sum of our actions, the same, markets are the sum of people’s behavior. So what influence us, definitely influence markets as well. You might say that this is not so true anymore with all this high-frequency-trading algorithms and with the quant science all over the place. However, I would have to argue back, saying that even so, humans are in charge of programing those too. So the purpose of this whole chapter was to bring to your attention this special field that , as you can see, influences trading, as people are influenced.

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