The Moon And Tides
Tidal range is also influenced by the Moon's phase. This term is referred to as Spring tides or king tides, and it has no relationship with the season of spring. nocturnal dew, tidal effect, weather patterns, magnetism and polarization of In this paper, we study the relation between lunar phases and stock market returns. Moon's Phases and Tides. Moon Phases. • Half of the Moon is always lit up by the sun. • As the Moon orbits the Earth, we see different parts of the lighted area.
Then for six hours, the water level will recede into the ocean. Because oceans are liquid, their bulge is more obvious than the land bulge. High Tides The side of the Earth facing the moon will have a tidal bulge called the direct tide. Similarly, on the opposite side of the planet, the ocean will also be bulging.
This is called the opposite tide, and it happens because the inertial force of the Earth exceeds the gravitational force of the moon at this location. Therefore, high tides occur simultaneously on the the opposite sides of the Earth.
francinebavay.info - How the Moon Affects Ocean Tides? (Part 3)
In some places, low tide can be only a few feet, while in others the ocean can recede much farther. High and low tides both appear two times each in a hour day, but since the moon rises 50 minutes later each day, the tide cycles will differ by the same 50 minutes daily.
Spring Tides The phases of the moon also affect tides. When the moon is at its full or new moon phase, high tides are at their highest, while low tides are lower than usual. Called spring tides, these tides occur when the sun, moon and the Earth all line up. The cycle of the moon from new moon to new moon is called the synodic cycle. This cycle, although invisible, appears to have quite an effect on the markets.
I would venture to say: Not only is the moon involved but other planetary bodies in our solar system as well. Think of our Solar System as nothing more than a big Clock.
Trading by the Light of the Moon
Everything we do here on Earth is based on Cycles. Our method of keeping time and our Calendar is all based on the relationship of the Sun Earth and Moon and how long it takes for the bodies to move a certain distance in a certain time. Even our Seasons change as a result of these relationships. I am not a Scientist or claiming to be one so lets move on to the empirical evidence.
Personal Observation It has been my personal observation that specific phases of the moon appear to have a direct effect on when any given freely traded market will reverse direction on a Daily Chart.
A reversal, as defined for the purposes of this article, is when the current daily price bar close is below the previous day price bar close when the market is trending up. Or, a reversal is when the market is trending down and the current daily price bar close is above the previous day price bar close.
The lunar phases I'm talking about here are the new moon, first quarter, full moon and last quarter.
Each time I tested this concept, it worked equally well for each market tested within the defined tolerances I have also outlined here. Another thing to consider is that Market Price moves in a Circle rather than up and down. Which would mean each Quarter Phase is equivalent to 90 Degrees.
That is a Cycle isn't it? The Basic Premise Take the ephemeres lunar dates.
Trading by the Light of the Moon
Look at each date listed in the market of your choice, and you will notice pivots occur on or around that day. The pivot day, for purposes of this article, is not the reversal day but the day just before it also known as the set-up daywhich signals the change about to come. I have noticed that pivots generally occur within a tolerance range of -2, -1, 0, 1 or 2 trading days of the specific moon phase date, zero being the actual phase date.
A hypothetical example of this would be if the next ephemeral date were August 9, The pivot day could be anywhere from the 7th to the 11th, the 9th being the zero day or actual lunar date. A smaller percentage of the time, pivots occur within a tolerance of or -3 trading days, so please keep this in mind.
I have also noticed that a pivot day can occur on either side of a phase date in the same week. Please take a look at the Daily Corn Chart for empirical evidence of this phenomena. Holidays and weekends are not considered trading days in most markets. So, when a phase date occurs on Saturday, we use Friday's date. When a phase date occurs on Sunday, we use Monday's date except when trading Forex because Sunday is an actual trading day in the Forex market.