Learn how to use the method of true eclipse in your trading

Eclipses are not as common as fast planet changes, but they are very useful for your trading, when they happen. Watch our latest video to learn how to use the method of true eclipse in your advantage.

Method of true eclipse – take a look and observe

Hello, and welcome to Diary of a Trader. Today’s video, we’re going to go over eclipses and this is kind of a continuation of… Well, it’s not kind of, it is a continuation of the series of videos that we’ll be doing here over financial astrology. Again, financial astrology is not like the horoscopes or the things you read about how can I get my Libra to fall in love with me, being a Sagittarius. It has nothing to do with that. The definition of financial astrology is it’s mathematical psychology, based on astronomy. And so, when we talk about things like Libra, or Leo, or Mars being in the third house, those are just designations of the area, or, like, a planet in Aries. That is just a way to say, well, this planet is in this part of our solar system at the moment. It’s a different way of saying its longitudinal position related to where we are here on Earth or where it’s related to, in its orbit around the Sun. So, financial astrology takes the angular relationship and ascribes it a certain name according to which quadrant of a circle and it’s very much like this. So, we can see that this is a circle and here is Earth in the center and we see Mars is right here and it tells us that Mars is in Aquarius, okay? So, these are just designations by degrees of… Every 30 degrees, we find planets in a different sign and it’s sometimes just easier to, at least for me it is, remember them as far as where they are in respect to the degree of 0 to 360.

Anyways, what we’re going to go over today is we’re going to discuss how to use eclipses in your trading. So, we have already discussed how to use the change of planet signs, so today we’re just going to get right into the use of eclipses. And, if I can find where I put… Here, there it is. Now, these will paint on the screen, so, again, eclipses are not as common as fast planet changes, these are not as common type of Astro phenomena, but if we’re looking at the Euro/Dollar, and we see eclipses as they show up, let’s actually make these a little bigger and change the color to black, maybe. So, we can see that when an eclipse shows up, at least on this earliest date of that, we see there’s an eclipse that says that we may be going higher, another one says we’re going lower. As we move forward here, we see that it’s sometimes hard to judge where an eclipse shows up and what the market is going to do, alright? So, instead of using the daily… And there’s nothing wrong with the daily. The daily is actually my preferred trading time period, but sometimes it’s easier to use an oscillator, but then use it on the weekly, because eclipses show up less frequently than other types of astronomical phenomena. Sometimes, it’s easier to use the weekly and use that in conjunction with the Composite Index or with another tool. Very similar to the Composite Index is the RSI. Actually, the Composite Index is like the RSI version 3.1. But, what we could do is, if we’re looking at a weekly chart and we see eclipses appear during a high or a low in our oscillators, or we could even use on the weekly Stochastic RSI. It’s Stochastic Momentum Index, I’m sorry. But, we could get a good view of how to trade eclipses by looking at the level of these oscillators. And so, if we look here, we see that in the Stochastic Momentum Index, we see that we’ve changed from sloping up to sloping down. And then, on that week that shows up, that eclipse is more than likely going to indicate that we’re going to face some down pressure as we roll along. It’s a little less clear at this sign, a little less clear at this sign, but certainly, it’s a lot more clear here, a lot more clear here. Certainly, when we know that we are at some type of statistical bottom within the Stochastic Momentum Index, we know that, as an eclipse showed up here, that our probability of going lower was significantly less and we have a nice opportunity to trade higher. Alright, as we’re moving along we can definitely see this play out as we get into the most recent years, in 2014. We can see that the Momentum Index is in a sustained down zone, just really very, very excessive selling pressure as we’re moving forward. And then, as we get into late 2016, early 2017, we can see that eclipses tend to show their faces during areas of market highs and market lows.

And so, how you would trade these is going to be very much like any other phenomena. We’ve gone over Moon phases before, so, if we use these in conjunction with Moon phases, is just going to plop those on there, and then on Moon phases, all we really need to do is see the New Moons and Full Moons, and so we know that in the… We can go to the daily here, we know that on the Euro, at least, we know that New Moons, which means there is no moon in the sky, we know that New Moons usually tell us that we’re at some type of market swing high. And so, if we have an eclipse here and a New Moon, that is a good signal that we are probably going to experience some downward pressure. If we move back and look at some other examples, New Moon, there was selling pressure that followed it, but it eventually turned up. We move back even farther here. You can see a strong correlation to eclipses and New Moons. And we rarely ever see, well we’ll never see eclipses and Full Moons. All right. That is just one way to look at the market. Ultimately, what we really want to recognize with eclipses, is that they signify change. They tell us that there is going to be some major changes in the future and that we need to pay attention to the trend prior to it and coming up to it.

So, our next eclipse is in July 2013, sorry, 2018. July 13th, 2018 and this is interesting because this is an important area of Gann’s dates that he specifically called out as very important to pay attention to, because he said, “Yearly highs and lows can typically be found between the 7th and the 13th of July.” And so, we need to look to see if we are at or near yearly lows on this date, because if we are, then we have a good chance of a flattening trend before we go into the Full Moon period and then see a rise in prices, alright? It’s just something to kind of take a look at and observe, and it’s something that we can implement into our trading along with all the other astronomical financial astrology tools that we have used. Thank you for watching this video and I look forward to talking with you in our next video. Bye-bye.