The moon effect on the financial market
Many things proof the lunar phase effect on the financial sphere. We propose to consider this question in details.
It's obligatory to understand the meaning of moon phase, the new/full moon definition and explanation of it. For businessmen it's good to know the periods of new and full moons of last year. It gives us possibility to analyze graphic and make conclusion about their effect on the "behavior" of market. Financial predictions are possible with all this evidence.
Lunar phase definition
The lunar phase is moon's sunlit portion shape which is seen from our planet. It differs depending on the relation and location of the Earth, Sun and Moon. Changes in phases of moon are cyclic. The Earth gravity keeps just one moon's side visible for us. And different parts of this side are sunlit in different period of time.
New moon definition
If you can imagine the straight line in such order of "points": Earth - Moon - Sun, the Moon can't be visible. The term for this event is "lunar conjunction". The new moon follows it. After conjunction the thin moon's edge turns out to be visible. The term for this event is "the new moon". It happens every twenty eight days.
Full moon definition
During next two weeks the visible edge becomes bigger and bigger. Observers can see whole its hemisphere in 14 days. The term for this event is "the full moon". In this position of celestial bodies you can imagine a straight line with another order of "points": Sun - Earth - Moon. It is Moon/Sun opposition. After the sun goes down people can see full moon which appears above the horizon.
During two weeks the sunlit part of the moon becomes smaller in size till the next new moon. This is endless process. The time of the phases of the moon can be determined calculating the mathematical formula. On the basis of mathematical calculations ephemerides (table with data about time and positions of the celestial bodies) are made.
The preferable and lucky time for bringing business ideas to life is 1st-14th moon phase days. The visible edge increases as well as chances for success. It is fortunate period for important negotiations, taking serious decisions, realization of business projects.
From the 15th till the 28th days of the phases of the moon is the inauspicious period for business. It's better to forget about new beginnings and launch of new projects. It's obligatory to focus on the current every-day job and try to avoid mistakes.
How can we apply these facts to the financial market? There are very simple and very short rules. The first rule is the following: the new moon - the new beginnings. The name of the phase gives the cue of what to do. It's time to start, to acquire, to buy, to decide, to act decisively. It's the best period to buy stocks because the cost of stocks increases with the moon increase. The second rule is following: the full moon - the calm time. Be extremely attentive during this period! It's better to continue, to sell, to finish, closing. For example, the stocks cost decreases with the moon decrease. So, it's preferable to sell them during this period.
The relation between E-mini S&P 500 and DOW futures continuous is about 1:10 (to be more accurate 1:9.8). So, 1 DOW point represents 10 E-mini S&P points. The graphs show a just about perfect correlation between the mentioned indices in relation to the moon phases. That is why it is rationally to analyze just Dow index.
From 1915 till 1994 a mathematical study was being carried out for DJIA. In such way determining of all lunar cycles was done. The inference was that there's a direct correspondence between lunar phases and the development of market. The important fact for trading opened due to these investigations is that on the 25th-28th days of the cycle the market gets its lowest point. Then, it goes up approximately till 14th day of the cycle. Digressive trend lasts around approx. 14-21 days of the cycle. After a Low is registered, the market raises till the New Moon. There is a graph of the process.
To understand clear all said above it's better to see the graph.
- Mostly we see the Full Moon relation to a High, the New Moon relation to a Low
- In situation when the rule doesn't work (less than 25% of cases), we understand that the astrological events relate to a severe reverse market point
Much work was done to make such conclusions and to determine the rules. You can confirm these parallels also if you deal with the research work of such kind.
We don't try to ensure somebody that astrology is ideal. But we highlight the existence of additional possibility to predict the local Low and High points as well as the reversal points. In such way it's easier to make multiple trading systems right.