Financial Astrology uses astronomical data to explain and forecast the behavior of the financial markets. It is also the practice of relating the movements of celestial bodies to events in the financial markets. Thus, financial astrology is a branch of astrology which is concerned with capital market, especially secondary market, where stocks, currency and commodities are traded. It assists an investor in the process of investment management in selection of risky securities from secondary market segment of stock or share or equity market, commodities market and currency market which involve high risk and return.
In general, astrology predicts the human behavior and events related with future. On the other side stock market also runs on future expectation of human being from economy, industries and companies. And therefore, scope of astrology also covers prediction of different aspects of economy, industries and companies which is ultimately run by the human beings and for human beings.
Thus there is a correlation between astrology and stock markets.
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As per the principles of Indian Vedic Astrology, planetary positions have certain effect on human behavior, economy, social situations, agricultural output, rainfall, political environment; etc. And by this way, it may have some association with movement in prices. The theory of financial astrology deals with this. Since, planetary positions into zodiac signs are exactly predictable based on mathematical calculations, one can predict its possible impact on stock price movement during that time.
Another reason why financial astrology works is that it is a study of economic cycles with planetary cycle. It has been proven fact that the economy, industry and business are following certain economic cycle. They are Revival, Expansion, Recession and Contraction.
So, the price of stocks, commodities and currencies are affected by this fourfold economic cycle. And therefore, the return on investment in the respective market is also affected by the same economic cycle. Therefore, stock prices also follow certain trend and it is predicted by observing and identifying a repetitive pattern of waves.
This principle was concluded by Elliot in his very much popular theory known as Elliot Wave theory which is widely practiced by investment managers for managing their portfolio. In fact, Elliot believed that all of man's activities, not just the stock market, were influenced by these identifiable series of waves. Financial astrology follows the same principles with premises that this economic cycle is influenced by planetary movement which is also cyclical in nature.
And therefore, different economic phases and its impact and outcome on industry and companies are also influenced by planetary movement. So, it is predicted by using astrological principles. For example, as per western astrological research initiated by legendary trader William Gann and followed by many others, the Jupiter-Saturn cycle of The Jupiter-Uranus cycle, which lasts The Saturn-Uranus cycle of 45 years has been shown to coincide with periods of business boom or bust. Henry Hall, in his recent book devoted much space to 'Cycles of Prosperity and Depression' which he found recurring at regular intervals of time.
The mathematical laws which have been applied in Zodiac Stock Market Astrology will give these cyclical swings, identifying the primary, secondary and tertiary trends. There is much other evidence based on research available which states that planetary cycles based on western astrology do influence economic cycles. However, all these research evidence are belonging to western countries.
There is no significant research based empirical evidence in India showing the same fact. However, principles of Indian Vedic astrology lies in our ancient Vedas, acknowledge the same facts with much more detail explanation. As per principles of Indian Vedic Astrology, every planet represents different sectors and parts of economy and based on positions of planets in zodiac, the trend and cycle will be predicted in different sectors and parts of economy.
Thus, financial astrology suggests that at what time one should take trading positions either by buying or selling of shares in stock market or commodities or currency in respective market. Time is the essence of everything. In stock market, entry and exit at right time is the key to earn healthy profit which is suggested by financial astrology.
Financial Astrology — How it works? There are different approaches of financial astrology depending upon the methods that a financial astrologer is using. Different financial astrologers use and interpret different astronomical data to suggest in taking investment decisions. At present, Fundamental and Technical analysis are two popular and widely used approaches for security analysis in process of investment management.
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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 or investment managers 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.
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, investor or investment manager may choose the best industry, the best company to trade in chosen industry and the best timing the trade. Thus, it fails to estimate the exact points by which it will rise or fall.
The fundamental analysis and technical analysis answers this issue. 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. So, financial astrology should be viewed as an adjunct to the resources of fundamental and technical analyses to improve accuracy in trade and increase return on speculative or long term investment. Thus, the area of financial astrology is an integration of two district and independent disciplines viz.
Finance, a derivative of Economics and Astrology. The following flow chart is an effort towards concluding the concept of financial astrology from its grass roots. There are literatures be evidence for that the stock return as well as volatility is influenced by many calendar events like Weekend effect, Day of the Week Effect, Month of the Year effect, festival effects etc. It signifies that stock price movements are not random. Financial astrology is highly unexplored area and hence a small number of literatures are available.
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David Williams explain the effects of planetary movement on stock price on market of USA. They also suggested forecasting model based on their findings. Steve Puetz explained relationship between eclipses and stock prices in USA. SurendraSinha , UmeshPuri and Dr.
Ajay Jain published their observations about effects of planetary positions on stock market on Indian Stock Market.
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However, they based on astrological properties of planetary positions. Apart from this, there are substantial evidences available which states that stock prices movement in all the major countries of different continents are influenced by lunar cycle.
Thus, literature shows the evidences related with financial astrology which state the effects of events based on movement planets on stock market. However, there are not strong evidences for research which trace utility of Indian Vedic Astrology into price perdition, especially in India. Therefore, there is lots of scope for research in this unexplored area. Research can be undertaken to test validity of astrological properties and rule of different planetary conjunctions and its impact on price movement. Over an above, research can be undertaken to trace effect of some important astrological event like Eclipses, Panchak, Rahukal etc.
Singh, P. Mumbai, India: Himalaya Publishing House. Sharma, S. Jaipur : India : Mukund Publication 3. Trivedi, H.