I don’t know how many of you actually take into consideration astrology when thinking about trading, but these concepts (astrology trading) are coming back into the technical analysis world these days. You may ask me why coming back, and the answer is that they are old concepts, belong to the old school of technical analysis and they were introduced to the technical community by one of the greatest traders of all times: W.D. Gann, George Bayer and George Marechal. This being quite a huge field it is impossible to cover it in two chapters, and therefore I will try to focus on main things for you to look for and hopefully your petticoat and curiosity for finding out more will be drive you in the search for new information.
You may even find the term astrotrading when google for more information, but I would not go that far and from my point of view, even this is an important field to take into consideration when trading, you should look more for some key issues, like:
- look for retrograde motions, (understand the concept behind) when looking for possible tops/bottoms;
- look for three dimensions: vertical (time), horizontal (price) and diagonal being the geometric measure (the more important one, and as a matter of fact if I were to put them in order, it would be the diagonal, than time, and price would be on the last position);
- look for the concepts of new moon/full moon in influencing people’s behavior, as market moves/cycles are a sum of people’s behavior;
- look to apply the concepts to higher time frames only (daily charts and above).
The recording that goes with this chapter will show you a Brent Crude Oil Weekly chart that focuses on forecasting future price movements/targets/confluence areas based on the three dimensions mentioned earlier, and using the retrograde cycle of Mercury applied on the actual chart.
The book recommendation for this chapter is David Keller’s “Breakthroughs in Technical Analysis – New Thinking from the Worlds Top Minds”, Bloomberg Press, New York, 2007. Out of this book, search for the Price and Time chapter, and the information in there should open your appetite for finding out more about how this area influence trading.