Forex trading is not an easy skill and the more tools a trader has regardless of those tools they will have a leg up on executing successful trades. While forex traders have tools such as the latest and greatest trading platforms, data, political and economic news & trading calendars traders will sometimes turn to unorthodox methods of trading.
While there has not been a great deal of research done on astronomy and forex trading this is a strategy that some traders use. When the stars, moon and sky (along with other planets) line up together, the markets are sometimes known to make patterns. Some traders believe that patterns which are created by the alignment of the planets create a strong system providing the time component with exact precision of day, hour and minute to pinpoint market direction.
There are several patterns of the planets which traders follow on a consistent frequency. A solar eclipse has provided detailed accuracy for traders and markets have been known to rally when solar eclipses have taken place. In addition, the same phenomenon has taken place when lunar eclipses have taken place. When looking at historical data/charts you would be somewhat surprised at the correlation between when eclipses have taken place and trading trends.
When looking at astronomy as a focal point for forex trading we can use specific planets as an example. For example the planet Mercury moves around the Sun quickly and can influence short term moves in addition to providing more signals compared to other planets. On the other hand Mars gives traders fewer signals along with a higher probability and larger move.
There have been studies along with research on moon phases and trading. Several studies have shown that buying at a new moon and then selling at a full moon was typically one hundred percent more profitable as a strategy during upward markets compared to a buy and hold strategy.
Traders believe there is a direct relationship between the foremost phases of the moon and specific points that a market will change direction. The phases of the moon from a new moon to another new moon are described as the synodic cycle. This cycle of the new moon to another new moon lasts twenty nine and one half days in length.
When looking at phases of the moon there is a correlation between those phases and trends within the markets. Again, statistics point in the direction that there is a strong correlation between the phases of the moon and trading cycles. Usually, the market accelerates two to three times during new moons and waning moons as opposed to full to waning moons.
In closing, forex traders use numerous strategies which allow them to hopefully get an upper hand on their positions. There is a sub-group of traders who believe that by using astronomy they can increase their odds on a successful trading position. Several planets and stars which are used in this trading theory/strategy are Mercury, Mars, the earth’s moon and the earth’s sun.