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Fibonacci Trading and Planetary Motions

There are traders who make use of Fibonacci ratios (0.382, 0.500 and 0.618) and the planetary motion ratios (0.38877/0.3902, 0.509 and 0.6151/0.6011) that almost coincide with each other. The planetary motions may be of great help to traders in predicting the possible outcomes of market prices over a specified period of time. However, traders have to caution themselves as not to rely too much on astrological phenomena such as the movements of the planets when making trade decisions. Those who analyze the market using a technical tool and the planetary motions have more chances at winning especially if they are about 55% sure of their analysis of the time element.

The ratio of a planetary motion refers to the time that planets need to revolve around the sun. It takes Venus 224.70 days to go around the sun while the Earth will take 365.256 days. To get the Venus/Earth ratio is to divide 224.70 by 365.256 which will give 0.6151. The quotient derived is near 0.618 of the Fibonacci ratio. The Mercury/Venus ratio will yield 0.3902 which is just a little different from 3.802 from the Fib ratio. Those who are interested to know more about the various ratios involved in the sequence of planetary motion ratios may check the information online or through some software programs that have been created by experts in both financial astrology and Fibonacci trading.

The planetary motions somehow affect the rhythms of the various financial markets around the world. Those who have been in the trading business for quite some time understands that the prices may move up and down at certain levels that are calculated through proven systems such as the Fibonacci retracement levels. Although astrology has been used by lots of traders, there are those who were not successful. The knowledge on the planetary motions may be effective just like other strategies used in making predictions depending on the accuracy of the analysis and the future price projections.

It is also important that traders check the reliability of the source of the information that they get especially when it comes to understanding the movement of stocks commodity prices and world currencies as well. Financial astrology may involve other parameters too not just the motions of the planets. Just like other strategies like Fibonacci trading, people may be able to apply these concepts in trading through the use of a software program that are designed to make accurate calculations for possible future market trends. There are also some developers who have combined the two methods and other methods of analyzing the markets. Traders may have a better and a more efficient way of looking into the trends for possible opportunities at making profit.



Source by David Rivera

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