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__ bs2|212]282| 99/154 155 186 157 156159) 160 16/ 1621631124] 10s lene | 2773831314 |253|200 201 202,203 2041205 |208)207 z08|209 210 |21(2)R| 213384 315 p54 /255 256 257 258 259 260|%a)) 262 2631264 265|206 26
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(36 387 388 389.390 391 392 393'394)395|996 397'396.399 400401 402 40:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Relating the square to the price chart showing geometric lines, the first support levelis seen to be exactly at 240 (upper left diagonal), the major resistance at 276 (right hori-zontal), the next minor support at 268 (lower right diagonal), congestion area support at254 and 262 (1 box off), and back down to support at 240. Notice that the distancebetween the lines on the square becomes wider as prices increase, conforming to thenotion of greater volatility at higher prices. It is also expected that soybeans ai $10 willhave some Jost motion near these key support and resistance levels. ~
The Hexagon Chart
Gann generalized his squaring method to include both geometric angles and the maincyclic divisions of 360°. By combining these different behavioral concepts, the strongestlevels of support and resistance are found where all three coincide. The generalized con-struction for this purpose is the Master Calculator, based on aligning the chart at a point”representing a multiple of the lowest historic price for that market; crisscrossing angles 
caer seer ert cere tenes
 
 
 
 
iPei‘y
 
 
370 BEHAVIORAL TECHNIQUESi signate support and resistance for the specific market. Other time charts ofTraponance ate the Square of Twelve (one corner of the Master Calculator), the HexagonChart, and the Master Chart of 360°. The Hexagon Chart can be used as an example of thembined effect. 7“ nS shown in Figure 14-20, the inner ring begins with six divisions, giving Gann thebasis for the chart name. Each circle gains six additional numbers as it proceeds outward,which relates to the overall continuity of the construction. In using the hexagon, thedegrees represent time and the numbers in the circle are price; a major support or resis-tance point exists when both time and price occur simultaneously.
For example, consider the 360° of the hexagon relating to the calendar year, or per-haps the crop year for grains. In his own work on grain, Gann equated 0° to March 20, nearto the first day of spring when the sun crosses the equator going north. Then, the 45° lineis on May 6, 90° on June 21 (the first day of summer), 180° on September 23 (fall), and270° on December 21 (winter). These primary divisions also represent the most significantplaces for price support and resistance. The other lines represent secondary levels.
‘When looking at price and time together on the Hexagon Chart, the distance berweenthe major degree lines becomes greater as prices increase showing the importance o|
eee
FIGURE 14-20 The Hexagon Chart.
 
 
 
 
 
 
 
 
 
 
oer
 
 
FINANCIAL ASTRULOGY 371
 
volatility. Using the price of November 77 soybeans, the chart shows that between 90° and180°, or June 21 to September 23, 1977, the price of soybeans should have support at 567and then move its major support level to 507 and its major resistance to 588 with nexthigher and lower support and resistance at 432 and 675, respectively. As it turned out, thiswas a very accurate prediction.
On many of Gann’s charts there is notation showing planetary movement, not relatedto the cycles of seasonality, but what is believed to be the Jupiter-Saturn cycle, discussed inthe next section. These techniques make Gann’s work more difficult to reproduce thanmost methods; his tools are less conventional than others. If Gann were asked for a wordof advice, there is no doubt that he would caution to patience, stating: When price meetstime, a change is imminent.**
FINANCIAL ASTROLOGY
Astrology seeks a common bond in human behavior, similar to the work in biological rhythmsand cycles. The impact of astrology on civilization has been great; observations of the peri-odicity of the moon is traced back 32,000 years. Star charts were known to have been in Egyptabout 4200 B.c., and the earliest written ephemerides were in the seventh century 8.c.* Thepyramids at Giza are said to have sloping corridors leading from the faces to the interior thatwere used as sighting tubes for Egyptian astrologers for making accurate forecasts. The accep-tance of dstrology throughout history is widespread, including virtually all civilizations.
Even sophisticated analysts have been found to confuse astrology with the daily horo-scope found in a local newspaper. Astrology, the interpretation of the effects of planets andstars on human affairs, is an art followed by a large portion of the world population andshould not simply be discarded as mystical or occult. Interpretation of these effects can becomplex and involves special skills. Most forecasts begin with a birth chart, whichdescribes the position of the stars at the time of inception, then look at the current po:tions to identify the transitions. Over time, planets have taken on an association with spe-cific raw goods, and constellations are associated with certain types of business; theserelationships can now be verified using computer programs that check the intricate posi-tion of the planets with the financial statistics of companies to find a correlation. However,that task will be left for the more ambitious. -
We must all agree that the positions of the planets and sun—those bodies with thelargest gravitational pull on the Earth and each other—have clear physical effects. In thestudy of physics, this relationship is given as
 
Gravitational constant x Mass
Force of attraction =Distance between centers
where the gravitational constant is 6.67 x 10~, the mass is found in Table 14-1, and the dis-tance between the centers can also be calculated from Table 14-1.
Of these physical effects, the seasons and the tides are undeniable; and there is muchmore when you study astronomy, the science of motion of the stars and planets. In this sec-tion we will concentrate our attention on the physicatphenomenon of planetary motionwhich can be identified and tested'with the same confidence, and perhaps more, as othertrading systems. Among these phenomena, eclipses and the lunar cycles are the most obvi-ous, but there is one other combination that is important, the Jupiter-Saturn cycle.
2 Computer software is available for calculating and plotting much of Gann's works. See “Ganntrader I,” Techni-cal Analysis of Stocks & Commodities January/February 1984), or contact Gannsoft Publishing Co., 311 BentonSt., Leavenworth, WA 98826, or Lambert-Gann, RO. Box O, Pomeroy, WA 99347.
% Derek Parker and Julia Paricor, The Compleat Astrologer (McGraw-Hill, New York, 1971, p. 12). 
 
372 BEHAVIORAL TECHNIQUES
The Jupiter-Saturn Cycle
Jupiter and Saturn combine to represent the overwhelmingly largest mass, other than the‘Sun, in our solar system (see Table 14-5). The two planets amount to about 95% of the totalmass of all the planets and are about .7% of the mass of the Sun. Because they are in adja-cent orbits, they have a very large gravitational pull on other planets when they are nearOne another, and very different effects when they move apart. They are so large that theycause the Sun to shift periodically based on their positions around the true center of massof the solar system, called the barycenter. When Jupiter and Saturn are on opposite sidesof the Sun, the center of mass is near the center of the Sun, but when the two large plan-ets are together, the Sun is pulled away from this center. This positioning also has signifi-fant effects on the Earth's climate, which in turn affects agricultural production, supplyand demand, and finally the economy.” The Greeks called the Jupiter-Saturn cycle “TheGreat Maker of Time,” and it is said that every significant cycle in stocks, commodities, andinterest rates is either a multiple or a harmonic or the Jupiter-Saturn cycle. The most well-known, the 59-year Kondratieff, is three times the Jupiter-Saturn cycle @ Xx 19.859 =59.577). Gann, who used a combination of time and price, based time expectations on sea:sonality and cycles. His work referred to a “Master Time Factor” that was never defined, butexperts believe that the Jupiter-Saturn cycle satisfies his technique.
Charting the Saturn LineHaying decided that the movement of the largest planets affects the way markets move, youcan create a planetary envelope based on Saturn's path with respect to the Dow JonesIndustrials and find frequent concurrence. This requires converting the position of theplanets into price. When completed, this envelope is treated as support and resistancelines in a manner similar to the standard charting interpretation, in which penetration ofaresistance line will become support; however, in appearance, the Saturn lines are curvedto represent its cycle (see Figure 14-21).
» For a complete discussion of this topic, see Henry Weingarten, Investing by the Stars (McGraw-Hill, 1996). Asection written by Richard Mogey, “Long Cycles and the Master Time Factor,” is the basis for the next section.
>* Jeanne Long, “Planetary Support and Resistance on the DJIA,” A Traders Astrological Almanac 1994 (Profes-sional Astrology Service, 757 S.E. 17th St,, Ft. Lauderdale, FL 33316) .
TABLE 14-5. Size and Position of the Planets and Earth’s Moon
 
 
Equatorial Distance Duration— Diameter Mass* from Sun of Orbit(km) ke) (enil km) (Earth yeors)
Sun 1,392,000 _ 1,99 x 10% ° 0Mercury 4,880 - 334x108 57.9 0.24Venus 12,102 487x 10% ~ 108.0 0.62Earth 12,756 5.98 x10" 149.6 _ 1.00Mars 6,794 735x102 ~ 279 1.86Jupiter 142,800 8.39 x 107 773.3 - 1186Saturn 120,000 5,00 x 10” 1,427 29.5Uranus 52,000 3.77 x 10% 2,870 a4,Neptune 47,500 3.29 x 10% 4497 165.Pluto 2,500 5.98 x 107 5,893 248.Earth's moon 3.476 7.34 x 107 384,400 km _ 0.075
Throw dharmanea volume x deraity and, except for the Earth and the Earth's moon, the density ofthe planets can only be estimated.
 
FINANCIAL ASTROLOGY 373
 
FIGURE 14-21 Saturn lines drawn on the Dow Industrial.
 
Chart A
‘commoott+ weasetct ryete 5 wscKtR, eoteAco. 1LLEMDIS 60606
(OW 30 INDUSTRIALS INDEXCASH
       
3500
3450
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
re were never any closes over the ine;Tat ti ne is Roti and pricessom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
im
EeSS ay
DEC JAM 1992 FEB
 
 
 
 
 
 
 
 
 
 
 
 
 
——Source: Jeanne Long, A Traders Astrological Almanac (1994). Reprinted with permission from PAS, Inc. E-Mail:pas@bga.com Web Site: www.galacticinvestor.com.
Converting Planet Position to Price
Long transforms planetary position to price using two separate wheels, combined to forma Universal Clock, in a manner similar to WD. Gann. Each wheel refers to a specific mar-ket. To create the Universal Clock for the DJIA, you begin above the right horizontal (at 3o'clock) with the number 1 and move counterclockwise, placing 6 numbers per quarterand 24 for an entire cycle. You then move to the next outer circle and continue with thenumber 25 just outside the original number 1; therefore, each concentric circle containsthe next 24 values, ending at 360 (a full cycle). The DJIA Clock is shown in Figure 14-22.
__ In the outer wheel of the clock, the DJIA is shown in increments of 10 points begin-ning at 1930 and continuing in circles of 24 values. Long does not explain the choice of thebeginning price, but Gann uses a significant low, and astrologers tend to use the price at akey starting time, such as the beginning of a new Dow calculation, birth of an exchange, ortransforming event. ,
To locate the planet on the time wheel, begin with the planet's position on a specificdate. For example, on October 1, 1993, Saturn was at 24° (with respect to Aquarius) 14’.Aquarius falls between 300° and 330°; therefore, the position of Saturn is 300° + 24° + 14"= approximately 324°. By locating 324 on the inner part of the wheel, you can refer to theprices on the outer part of the wheel and find the ewo prices (each in adjacent circles) that 
374 BEHAVIORAL TECHNIQUES
 
FIGURE 14-22. The DJIA Clock.
‘THE UNIVERSAL CLOCK™2 Jeanne ong
       
saturn //5/ots
  
iS sPrice WHEEL TINE WHEEL
    
i
ivan
saTuRNPRICES.
    
‘The price wheel of the DJIA
Source: Jeanne Long, A Traders Astrological Almanac (1994). Printed with permission from PAS, Inc, E-Maipas@bga.com Web Site: www.galacticinvestor.com.
 
span the current DJIA price. These values are the current support and resistance lines. Newvalues are found monthly.
Major Physical EventsOf the major physical phenomena used in financial astrology, the most important are:
Solar eclipse——when the moon passes between the Earth and the SunLunar eclipse—when the Earth passes between the moon and the SunConjunction—when_any two planets are on the same side of the Sun (and form astraight line with the Sun) eaOpposition—when two planets are on opposite sides of the Sun (and form a straightline with the Sun)
The physical significance of an eclipse is said to be that it disrupts the flow of energy
i i i ional forcestwo bodies by the interference of a third mass. In actuality, the gravitation:pete co bodies'are ’d when they are both on one side of the Earth, as in a solar
of the two bodies are maximize ,i inimit on opposite sides, as in a lunar eclipse. Tables 14-6,eclipse, and minimized when they are on opp: Tables 146,
14.7, and 14.8 give the dates of the primary physical events for Jupiter and Siand solar eclipses, and new and full moon eclipses.
sieges
Bekdar ss
FINANCIAL ASTROLOGY 375
 
In astrology, the angles between planets are viewed from the position of the Earth; thisis called a geocentric system. When a planet lies on the line between the Earth and Sun, itis in a geocentric conjunction; when it is aligned behind the Earth, it is in geocentric oppo-sition. When a planet is at 90° to the Earth-Sun line, it is said to be square.” The angle thatthe planets form with the Earth-Sun line are called aspects. For the purposes of trading,squares are considered bearish while conjunctions and oppositions are bullish; however,there are other interpretations. Conjunction and opposition may not always conform to‘the strict definition of forming a straight line with the Sun, but may refer instead to closeproximity. Both solar and lunar eclipses are conjunctions.
Trading on Aspects
Although the clearest physical phenomena combine the sun, moon, and largest planetswhen they are in conjunction and opposition, there are many other combinations of plan-etary positions that are considered important. It may also be necessary to follow a planetfrom the 90° to 270° position so that you track its effect on prices through the mostextreme 180° path. The calculations for lunar and solar eclipses appear at the end of thischapter, but automatically calculating the aspect of combinations of planets would bebeyond the ability of even the most computer-literate traders; commercial software is avail-able for this level of detail and can calculate the number of occurrences that an aspect cor-responds to a price move or price peak of a minimum size. The simplest method is toselect days that represent swing highs or lows and record the major aspects. The larger the
* Hans Hannula, “Trading Planetary Eclipses,” Technical Analysts of Stocks & Commodities (April 1992).
 
TABLE 14-6 Jupiter and Saturn Planet RX and Stations, 1996-2001*
 
 
Jupiter Jupiter Saturn Saturn
(Retrograde) (Direct) (Retrograde) (Direct)1996 May 4 Sep 3 Jul 18 Dec 31997 Jun 9 Oct 8 ‘Aug | Dec 161998 julig Nov 13 Aug 15 Dec 291999 ‘Aug 25 Dec 20 Aug 302000 Sep 29 - Sep 12 Jan 12 (Jupiter not in sequence)2001 Nov2 Jan 25 Jan 24, Sep 26 (Saturn not in sequence)2002 Mar | Feb 8
 
**Source: Weingarten, Investing by the Stars.
 
TABLE 14-7 Eclipses, 1996-2001*
 
 
Lunar Solar tuner Solar__ Eclipse Eclipse Eclipse ~ Eclipse1996 Apr4 Apr 7 Sep 27 Oct 121997 Mar 24 Mar 9 Sep 16 Sep 21998 Mar 13 Feb 26 Aug 8 Aug 22Sep 61999 Jan3t Feb 16 Jul 28 Aug II2000 Jan 21 - Feb5 jull6 > jul!Jul 31 . Dee 252001 Jan 9 Jun 24 Jul 5 Dec 14Dec 30
 
Source: Weingarven, Investing by the Stars. 
 
 
376 BEHAVIORAL TECHNIQUES
TABLE 14-8 New and Full Moons, Eclipses 1996-2001*New Full New Full New Full New Full New Full | New Full
 
1996 Jan5 Jan 20 Feb4 Feb18 MarS Mar 19 Apr 4 ‘Ape i7 May3 May 17 Jun!Jun 16 Jull Jul lS Jul30 Aug 14 Aug 28 Sep 12 Sep 27 Oct 12 Oct 26 Nov!I Nov 25Dec 10 Dec 24
1997 Jan9 Jan23. Feb7 Feb 22 Mar9 Mar 24 Apr7 Apr 22 May 6 May 22 Jun5 — Jun 20Jul4 Jul20. Aug3 Augl@ Sep! Sep 16 Oct! Oct iS Nov 14 Nov 30 Dec 14 Dec 19
1998 Jan 12 Jan 28 Feb It Feb 26 Mar 13 Mar 28 Apr It ‘Apr 26 May 11 May 25 jun 10Jun 24 Jul9  Jui23 Aug@ Aug22 Sep9 Sep 20 Oct5 Oct20 Nov4 Nov!9 Dec3Dec 18
1999 Jan2 Jan (7 Jan31 Feb 16 Mar 2 Mar 17 Mar 31 Apr 16 Apr 30. May 15. May 30Jun 13° Jun 28 Jul 13° Jul28 Aug 11 Aug 26 Sep 9 Sep 25 Oct9 Oct 24 Nov 23 Dec7Dec 22
2000 Jan 6 Jan2I FebS Feb 19 Mar6 Mar 20 Apr4 Apr 18 May 4 May 18 Jun2_— Jun 16jul Jul3l Aug 15 Aug 29 Sep 13 Sep 27 Oct 13 Oct 27 Nov 1! Nov 25 Dec 1] Dec 252001 jan9 fan24 Feb& Feb23 Mar9 Mar25 Apr® Apr 24 May7 May 23 Jun 6Jun2i Jul Jul20 Aug4 Aug!9 Sep2 Sep |7 Oct? Oct 16 Nov! Nov 15 Nov 30
Dec 14 Dec 30“Source: Weingarten, Investing by the Stars.
swings, the more significant the results. By creating a table of key reversal levels, it may bepossible to find those aspects that exert the greatest influence on the market. Once iso-lated, they may be used as a bias within a technical program.
The Moon: Buy Full, Sell New
It is known that the moon’s effect on our planet is great—it is vitally connected with themovement of all fuids. The mass of the moon is about % that of the Earth and larger thanthe planet Pluto. It is remarkably large for a moon, with a diameter of 3,476 kilometers,27% that of the Earth. Because of its large presence and close proximity to the Earth (about230,000 miles), the moon is also believed to affect human behavior in strange ways, espe-cially during a new or full moon. \
jn an experiment conducted on an arbitrary set of furures markets for the year 1972,it was shown that short-term movements of prices react with some uniformity with respectto the phases of the moon. In fact, the markets chosen for observation—silver, wheat, cat-tle, cocoa, and sugar—showed an uncanny ability to form a rising market following a fullmoon and a falling market after a new moon.
‘To find the phases of the moon, you can refer to a number of books or any calendar;however, to perform any lengthy study of the moon’s effect on prices, the moon’s phasesshould be computerized. An Easy Language function that gives the dates of the new andfull moon follow.
Calculation of a New Moon, Full Moon, Solar and Lunar Eclipse
Although a highly accurate calculation of planetary positions and eclipses requires consid-ae eton of many minor items, a good approximation can be found with far less difficulty.
4 Todd Lofton, “Moonlight Sonata,” Commodities Quly 1974). -+1 Jean Meeus, Astonomical Algorithms (Willmann-Bell, inc RO. Box 35025, Richmond, VA 23235, 1991, Chap-ter 52), Ashorter version appears in another volume, “Astronornical Formulae for Calculators, Fourth Ed. (1988).For complete accuracy, the author refers readers to the “Astronomical Almanac, or the Canon by Mucke andMacus. The material in this section combines both versions of Meeus’s work.
 
FINANCIAL ASTROLOGY377
To calculate the exact time of the eclipses, it is first necessary to find the time of the new
and full moons. The resulting tim: in Juli isan full moons. The resul g times are expressed in Julian Ephemeris Days (IDE), also
Lunar Phases
The new and full moons are sim;ply two of the four lunar phases, measuring when thexcess of the apparent longitude of the moon over the apparent longitude of the Sun is O°,, 180°, and 270°. The times of these phases are given by the Julian date: ,
1. JDE = 2451550.09765 + 29.530588853k + 0.00013377?— 0.0000001507? + 0.000000000737*
where an integer value of # gives the new moon (Le: ¢., 1, 2, 3,-.), and an integervalue increased by .25, .50, or .75 (e.g, 1.25, 1.50, 1.75) gives the three quartersrespectively. The value k~0 corresponds to the new moon of January 6, 2000. Neg-ative values indicate times prior to the year 2000. T is the ti ian centurisince 2000, found by T = &/1236.85. ” 's the time in Julian centuriesTo check your results, & is approximatelh ult, ly equal to (year — 2000) x 12.3685 andthe year is expressed in decimal (e.g., the end of March 1997 is 1987.25)necting this formula, we can get alist of dates for the full moon from about 1995through the year 2000 (approximately 62) by creating an array called JDE and find-ing the 62 dates of the new and full moons ending at the year 2000 using theTradeStation code as shown in Figure 14-23.he Foncach value of kin the previous program, corrections must be made to findexact time of maximum solar or lunar eclipse using the following values:. Eccentricity of the Earth’s orbit around the Sun:
E=1—0.0025167 — 0.00000747?. The Sun’s mean anomaly at time JDE:
M = 2.5534 + 29.10535669k ~ 0.00002187? — 0.00000011T*
nN
we
FIGURE 14-23 TradeStation function to calculate the moo:and must be converted to calendar date.
 
phases. Results are
 
JED
(MOONPHASES,Returns the mean phases of the moon, correct!, ed for th .VARS: k(O), t(0), next{O), 1(0); the sun's aberration)ARRAY fullmoon[62](0), newmoon[62](0) ;next = -62;for i = 1 to 62 begin -- k = next: (newmoons relative to the year 2000}T= k / 1236.85