Astrology Share Trading

People use fundamental analysis and technical analysis to make investment and trading decisions. But there are a certain group of people who believe in using astrology for share trading. One website claims: "[Service]... offers a unique educational experience for traders wishing to decipher the esoteric mysteries veiled within the teachings of legendary trader W.D. Gann." You've probably heard of, William Delbert Gann who created the technical analysis tool known as Gann angles. Gann market forecasting methods are based on geometry, astrology, and ancient mathematics.

Financial Astrology

Financial astrology (also known as business astrology, economic astrology, and/or astro-economics) is the practice of relating the movements of celestial bodies to events in financial markets. The use of astrology in financial markets is not consistent with standard economic or financial theory, but might be considered heterodox economics. The scientific community considers astrology to be a pseudoscience.

Financial astrology is sometimes applied in the following ways:

• Predicting major economic trends as they relate to certain cycles, specifically on the cycles of outer planets
• Helping an investor find the best industry to be in for a particular period of time based on major planetary configurations
• Identifying the best stocks to own during a particular time period
• Identifying the best date and time to buy or sell a stock
• Correlating the Astrological aspect to the movement of stock market in day trading.

The practice carries the implicit belief that astrology is valid and influences human behavior. Although astrology is generally regarded in mainstream Western thought as having no logical basis, advocates of the efficient market hypothesis would also make the same claim with respect to most forms of technical analysis.

Evangeline Adams was one well known practitioner of financial astrology. In 1929 she predicted that the stock market would continue to rise in price. On Labor Day, September 2, she told a reporter for radio station WJZ that "the Dow Jones could climb to heaven." The next day the Dow Jones reached a record high that was not reached again until November 1954.

Gann Angles in Stock Market Trading

Gann described the use of angles in the stock market in The Basis of My Forecasting Method (1935). Calculating a Gann angle is equivalent to finding the derivative of a particular line on a chart in a simple way. Each geometrical angle (which is really a line extended into space) divides time and price into proportionate parts. The most important angle Gann called the 1x1 or the 45° angle, which he said represented one unit of price for one unit of time. If you draw a perfect square and then draw a diagonal line from one corner of the square to the other, you have illustrated the concept of the 1x1 angle, which moves up one point per day.