Tag Archives: Fibonacci Trader/Galactic Trader

Planetary Resistance Confronts Markets

Planetary resistance.

It’s a trading concept astro-traders use.

But most other traders have never even heard of it.

But there it is.

Resistance?

Planetary resistance is like regular resistance in technical analysis.

It’s an upper limit.

Essentially, it’s a zone that inhibits prices from going higher.

In technical analysis, we can find resistance in previous market highs.

More specifically, a high that’s held up after being tested repeatedly offers strong resistance.

When that happens, prices are unlikely to go higher.

Or we can use technical tools to project resistance zones.

A Fibonacci retracement. A Fibonacci extension.

Or an Elliott Wave target.

It doesn’t really matter how we get there.

By defining resistance, we can set price targets.

We can clarify our trading expectations.

And we can trade more effectively as a result.

What About Planetary Resistance?

But what makes planetary resistance different?

It’s market resistance derived from planetary positions.

So correspondences between planetary positions and market prices are a key.

As described in the book Gann Secrets Revealed Volume 1,  each degree of the zodiac matches specific prices.

By understanding those matches, we can track trading action.

Then, based on specific planetary alignments, we can anticipate trend changes.

It’s a fabulous trading tool.

That’s why I discussed planetary resistance with Larry Pesavento yesterday on his TFNN show.

We chatted about this S&P chart:

Mars Planetary Resistance with S&P
The red lines on the chart correspond to the positions of Mars. The blue lines represent Saturn. Note the heavier red line moving diagonally near the top of the chart. This first-harmonic Mars line clearly defines planetary resistance. The lighter red lines are Mars harmonic increments.

It highlights planetary price lines for Mars and Saturn.

With either stocks or commodities, planetary price lines reveal trading opportunities.

“There Must Be Something There.”

So I shared this chart with Larry.

He noted that “You mention Mars. You know W. D. Gann spent a great deal of time… And a lot of his charts have markings of Mars and things like that. Is that the same type of work you’re working on?”

I confirmed that connection. In response, Larry noted the precision of planetary resistance.

He looked at the price bars on the chart. Then he said “it’s amazing how they bounce off those red lines. There must be something there. That’s for sure!”

Here’s the full interview from the Trade What You See program:

CLICK HERE for information on the Fibonacci Trader/Galactic Trader software.

Get discount details on the Astro-Trading Intensive at: http://bit.ly/AT50NOW

 

 

 

W. D. Gann on Groundhog Day

,W. D. Gann had the right idea when he paid attention to Groundhog Day in an oblique kind of way.

After all, Groundhog Day is a curious bit of American folklore.

The 1993 “Groundhog Day” movie with Bill Murray created a cultural archetype. When you mention Groundhog Day, many people immediately connect the name with the notion of endlessly-repeating events.

I guess you could say that it’s like deja vu all over again….

Not Just Deja Vu

But Groundhog Day is actually a long-observed American holiday.

One that W. D. Gann knew quite well.

It had its U.S. origins with German settlers in southeastern and central Pennsylvania in the 18th and 19th centuries.

Groundhog
W. D. Gann was less concerned about this furry critter than he was about the planetary dynamics of a key calendar point.

According to the traditions associated with this annual event on Februrary 2, if it’s cloudy when a groundhog emerges from its burrow on that date, spring will come early.

If it’s sunny, on the other hand, the groundhog will see its shadow and return to hibernation as winter weather persists for six more weeks.

February 2 is also the annual date of Candlemas and of the festival of Imbolc in the Celtic calendar. More important for astro-traders, it also marks the midpoint of the Winter Solstice and the Spring Equinox in the northern hemisphere.

W. D. Gann and the Eighth Harmonic

It thus has particular significance as an eighth-harmonic calendar point in W. D. Gann’s market calculations.

As many students of this pioneering astro-trader’s work understand, W. D. Gann deeply understood the significance of market timing. He knew that paying attention to the calendar was one of the keys to connecting price and time for more profitable trading results.

To that end, W. D. Gann focused on the dates of the solar cardinal ingresses throughout the year:

As the Sun moves into the zodiac sign of Aries, we have the vernal equinox, the start of Spring in the northern hemisphere.

With the Sun’s entry into Cancer, the summer solstice ushers in another change of season.

The Fall Equinox comes with the passage of the Sun into Libra.

And the first day of Winter in the northern hemisphere comes when the Sun moves into the zodiac sign of Capricorn.

W. D. Gann’s Innovation

But W. D. Gann took things even farther.

In working with his calendar calculations and market forecasting, W. D. Gann also paid close attention to the timing midpoints between those cardinal solar ingresses.

UranusPlutoFeb2-W.D.Gann
Uranus and Pluto are approaching a fresh waxing square alignment on Groundhog Day in 2016.

This year, however, Groundhog Day has special significance for astro-traders. Uranus and Pluto will revisit their waxing square on that date; it’s an alignment that had seven exact iterations between 2012 and 2015. Although the two planets don’t make a precise 90-degree alignment this time around, it’s worth paying attention to the market reaction.

S&P UranusPluto
This chart shows the average price movements of the S&P 500 Index for 15 days before and after the seven previous Uranus/Pluto waxing squares.

While various markets reacted to those Uranus/Pluto configurations in different ways, the manifestations outside of the markets were consistent with previous Uranus/Pluto fourth-harmonic influences: a big increase in social, religious, and political tensions, with extremism and belligerence hitting major heights.

With that kind of extra stress coming at a critical calendar point this time around, we could see disruptive or contentious influences in the news that may make their presence felt in the markets, too.

Applying W. D. Gann’s Astro-Trading Principles

As modern astro-traders, we have a clear advantage over W. D. Gann.

We not only have the opportunity to stand on his shoulders, and follow his lead in market analysis and timing our trades – we also have a tool he didn’t even dream of:

Computers.

Today, thanks to astro-trading software like the Fibonacci Trader/Galactic Trader program, we can rapidly visualize astrological dynamics in the markets through planetary price lines and other tools.

It’s advantage that is reviewed in great detail in the live workshop recordings of the program on Profitable Trading with Planetary Timing.

It’s also a key part of our Model Portfolio success with astro-trading at FinancialCyclesWeekly.com.