As mentioned in different approaches of security analysis, financial astrology is one of the approaches of security analysis which will assist investors and traders .At present, Fundamental and Technical analysis are two popular and widely used approaches for both Investment and trading.
Fundamental Analysis of stock suggests investors/investment managers that what to buy. Technical Analysis focuses on deciding entry level and exit level which will give maximum return at given level of risk tolerance.
The art and science of financial astrology answers to investors and traders at what time one should trade. It
also suggests the tentative trend in prices for any future reference time period. Thus, financial astrology is concerned with timing of trade which is essence for any profitable trading activities.
For many times, it was observed in stock market that prices of shares in a particular sector move up for a particular period even though they don’t have any fundamental support and technical indicators of bullish trend.
Similarly, prices of shares in a particular sector don’t rise for a particular period even though they have favorable
fundamental support like favorable results of company, positive announcements by the government; etc and technical indicators of bearish trend.
This situation may be because of planetary positions related with stock or sector. Thus, financial astrology assists in
identifying the strength and gravity of trend in stock price. It also gives advance indication of trend reversal.
Thus, by using financial astrology,investors and traders may choose the best industry, the best company to trade in chosen industry and the best timing the trade.
Financial astrology doesn’t answer the question that by what degree stock price will rise or fall?
Thus, it fails to estimate the exact points by which it will rise or fall. The fundamental analysis and technical analysis answers this issue.
It helps investors and traders to estimate the degree of rise or fall in prices. Therefore, it is strongly recommended by researcher and traders of stock market to use financial astrology as a blend of Technical Analysis & Fundamental Analysis.
The use of astrology for choosing stocks should always be combined with the knowledge of what is
happening to the market in general with fundamental and technical indicators. The combined approach of financial astrology with fundamental analysis or technical analysis or both minimize the possibilities of loss making trade and hence improve profitability by reducing risk level.
Financial astrology is highly unexplored area and hence a small number of literatures are available.
- William Delbert Gann (1954),
- Louise McWhirter (1977),
- L. J. Jensen (1978)
- Lt. Cdr. David Williams (1984)
explain the effects of planetary movement on stock price on market
There are substantial evidences available which states that stock prices movement in all are influenced by lunar cycle. 24 March 2020 when Global Markets made bottom was NEW MOON
In Below Few Videos we have discussed the Impact of Financial Astrology in Stock Markets