Published on: January 7, 2024
Astro analysis, also known as financial astrology or astro-trading, is a unique approach to understanding and predicting movements in the stock and commodity markets. This unconventional method combines traditional financial analysis with astrological principles, asserting that celestial patterns and planetary alignments influence market trends.
While some may view this approach with scepticism, others argue that it provides an additional layer of insight into market behaviour.
What is Astro Analysis?
Astro analysis involves studying the positions of celestial bodies, such as planets and stars, and their potential impact on financial markets. Proponents of this method believe these cosmic forces influence investor sentiment, market psychology, and the overall economic environment.
Traders using astro analysis often rely on astrological charts, planetary transits, and other celestial events to make trading decisions. Interestingly, they also look at the sectors outperforming in certain planetary positions.
Do they have an Impact on Stock and Commodity Markets?
The influence of Astro analysis on the stock and commodity markets is a subject of debate within the financial community.
Advocates argue that planetary alignments and astrological cycles can provide valuable insights into potential market movements. Detractors, conversely, assert that economic fundamentals, corporate performance, and other conventional factors drive financial markets.
Despite the scepticism surrounding astro analysis, there have been instances where astrological predictions seemed to align with market trends. Traders who incorporate astrological factors into their analysis claim that it helps them identify key turning points and anticipate significant market moves. However, it’s essential to note that the correlation between celestial events and market movements is often subjective and speculative.
A Personal Experience in Commodity Trading
In 2012, while working in the commodity segment, I encountered a client who traded exclusively in Silver (MCX). What stood out about this trader was his unwavering belief in the importance of timing, regardless of the prevailing silver prices. He adhered strictly to specific days and times for buying or selling silver, guided by astrological principles.
While his approach may have seemed unconventional, his dedication to timing based on astrological factors was the first time I was introduced to this astro analysis.
Despite market fluctuations, he remained committed to his chosen schedule, demonstrating a unique blend of financial acumen and astrological faith. This personal experience highlighted the diversity of strategies within the financial markets and the significance some traders place on non-traditional indicators.
Importance of Analysis in Trading
Astro analysis is among the countless approaches traders and investors adopt in the financial markets. Whether based on technical, fundamental, or unconventional methods like astro analysis, the key is to have a systematic approach that aligns with one’s risk tolerance and financial goals.
Trading and investing accommodate a broad spectrum of methodologies, each with strengths and weaknesses. Some traders succeed in complex quantitative models, while others thrive using simple yet effective techniques like trendlines.
I know a person who has focused solely on trendline trading for three decades and knows that consistency and discipline can lead to long-term profitability.
The Nifty Levels and Astro Analysis
In the context of the Nifty, an important benchmark in the Indian stock market, astro-analysis enthusiasts may attempt to identify key levels and turning points based on celestial events.
While traditional technical and fundamental analyses dominate Nifty predictions, some Astro traders integrate planetary movements into their assessments.
Presented below is the Nifty chart, incorporating astrological highs and lows. While I don’t claim to be an astro analyst, these points have been plotted based on discussions with friends and insights from various articles.
Given the subjective nature of such analyses, please note that astrological levels can vary among analysts.
Nifty50 Weekly Chart
Source: TradePoint
Astro analysis can be an additional tool in a trader’s arsenal, like technical, fundamental or derivative analysis. Having been in the markets for over a decade, I have a few friends who are masters in this analysis, and I respect them and their studies.
Diverse strategies and methodologies coexist, each with its own set of believers and critics. Astro analysis, while unconventional, has found a niche that believes in the influence of celestial forces on market dynamics. The story of the silver trader from North India exemplifies the diversity of approaches within the financial community.
Ultimately, the effectiveness of any analysis or trading system lies in its ability to generate profits consistently. Whether one follows astrological patterns, trendlines, or sophisticated quantitative models, the key is to find an approach that aligns with one’s risk tolerance and financial objectives.
As I always say, “A study is a study, and if you are profitable, it is right for you.“
