Natural Rhythms and Ratios

January 22, 2010

If you really want to trade profitably, watch for the ways that the markets respond to natural rhythms and ratios.

With market astrology we undoubtedly have the most powerful tool available anywhere for understanding and forecasting the movements of the markets. You don't need to believe in financial astrology for it to work to your advantage, but you do have to learn to apply its principles. Once you begin to apply it to your study of the markets, you will soon discover just how powerful it can really be, and you will soon begin to understand that the real power in astrology comes from its adherence to natural law.

But astrology isn't the only thing that opens up the windows of the cosmos when we approach the markets. In seeking out the secrets of market success, it's also important to be aware of market geometry, of waves and cycles in price movements, and of divine harmonies in the patterns that unfold and reveal themselves in market action.
 
One of the most useful tools for astro-traders is the concept of Fibonacci retracements. Whenever prices have made a clearly-defined directional move, we can naturally expect a retreat from that advance or decline with a corresponding move in the opposite direction. The extent of that corrective move is typically determined by the Fibonacci ratio, with a retracement of 50% or 61.8% as the most common correction.

Pay particular attention to Fibonacci retracements that coincide with key planetary price lines as well--this is an extraordinary combination that can signal a high potential for trend reversals and profitable trading!
 
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