For Millennia the Moon has been thought to have considerable effect on Life here on Planet Earth, Especially as it relates to humans. Now to some that may seem like some kind esoteric idea or c4yourself esignal forex but it may be more scientific then you think.
Considering our bodies are largely made up of water this idea isn’t so far fetched. We can see the Lunar Effects on the Tides here on Earth and how powerful they are but that is not the only area affected in my opinion. So,” you may ask, “Why is a guy who invests in the market writing an article about the moon? In my research, I have found what appears to be a direct correlation between the primary phases of the moon and the points at which any given, freely-traded market will reverse direction.
To say the least, this phenomenon is quite amazing and has nothing to do with astrology and everything to do with astronomy and physics. The cycle of the moon from new moon to new moon is called the synodic cycle. This cycle, although invisible, appears to have quite an effect on the markets. I would venture to say: Not only is the moon involved but other planetary bodies in our solar system as well. Think of our Solar System as nothing more than a big Clock. Everything we do here on Earth is based on Cycles.
Our method of keeping time and our Calendar is all based on the relationship of the Sun Earth and Moon and how long it takes for the bodies to move a certain distance in a certain time. Even our Seasons change as a result of these relationships. I am not a Scientist or claiming to be one so lets move on to the empirical evidence. It has been my personal observation that specific phases of the moon appear to have a direct effect on when any given freely traded market will reverse direction on a Daily Chart.
A reversal, as defined for the purposes of this article, is when the current daily price bar close is below the previous day price bar close when the market is trending up. Or, a reversal is when the market is trending down and the current daily price bar close is above the previous day price bar close. The lunar phases I’m talking about here are the new moon, first quarter, full moon and last quarter. Each time I tested this concept, it worked equally well for each market tested within the defined tolerances I have also outlined here. Another thing to consider is that Market Price moves in a Circle rather than up and down.