DID YOU KNOW?
TA is just like Financial Astrology
Technical Analysis (TA) by plotting and charting historical data has long been used in the investing and trading world. Many “tacticians” follow these charts consistently in their attempt to use the past to predict or perceive the future.
TA concerning market price action, trends, patterns, cycles, and reversals, have been turned into to a science, with support & resistance and trendlines, indicators, and overlays drawn onto charts to determine where an equity price may be headed next. There are endless combinations of these useful factors used by analysts and professional traders, some of which are covered in our new publication, When to Buy and When to Sell, Combing Easy Indicators, Charts, and Financial Astrology (now available on Amazon).
The bottom-line goal for these traders and investors is to follow repeated patterns with the highest probabilities, based on past performance. There are long term trends, short-term reversal signals (often based on Support & Resistance lines), price pivot points, and measured moves that often suggest where a stock price will go. There are, however, other factors that can intercept some of these “expected” price moves, such as black swan events, earnings announcements, Federal Reserve policy changes, insider buying or selling reports, and just some basic news. These factors can change the direction of an equity, even if only temporary, causing short-term loss, and sometimes panic. One must realize that no pattern, indicator, or analyzation is 100% accurate due to these outliers.
Financial Astrology (FA) works on the same thesis, based on repeated patterns regarding the positions of the planets in the sky, known as transits and aspects. The history of the planetary positions can be plotted and charted in the same way as past price action is with TA. The history of these positions can be correlated with market price movements and historical events. The sign placement of the planets, along with aspects to other planets often form the same type of probabilities for future price action. Examples of a few of these combinations are also discussed in our publication.
The only clear difference between TA and FA is that the fact that the latter possesses an advantage to potentially “peek” into the future, with the use of an Ephemeris. An Ephemeris is a basic calendar of where each planet will be positioned in the sky far into the future. Though all charts can be considered “lagging indicators” (also discussed in the publication), as they stop at the present time, this advantage at least allows for the analyzation of upcoming transits and aspects to potentially prepare for well in advance. Research conducted on any selected planetary positions can be used in conjunction with TA to possibly improve the probability of a successful trade.
As we focus on in our publication, and will in future blogs, we are of the belief that the markets are mainly driven by human emotion and overall market sentiment. Since human nature is a component to trading and investing (with the exception of machine trading), there is a propensity to desire to get ahead of the crowd for maximum gain, and/or minimal loss. Whether this practice turns into a self-fulfilling prophecy, or is just manipulation, there is evidence that institutions utilize both TA and FA in their trading approach.
There are famous quotes regarding this matter, including famous financier J.P. Morgan, who once stated that “Millionaires don’t use Astrology, Billionaires do.” Should you decide to explore FA, we suggest conducting a little research, follow future blogs, and document some results to determine the validity for yourself.
