In my former career as an Investment Banker, I was aware of a kind of "secret society" within the world of financial market traders. Indeed, I was one of them! It is a small esoteric group of people who use arcane methods such as astrology, ancient geometry, Fibonacci number sequences, and more, to successfully forecast and trade the stock, commodity and bond markets. This article blows the lid on them and gives your readers a taste of just what is going on!
By the way, this article was read out in its entirety on the Sydney radio show "Out There" by the show host. Indeed, it sparked enough interest that I later did a 25 minute interview on a later show.
The rumors are true. Esoteric techniques ARE being used to make big money. Whether it be collapsing stocks on Wall Street, or volatile Commodity Futures, the esoteric traders are out there and growing in number.
During my eleven career in Investment Banking, my role as Technical Analyst to a number of major firms gave me the opportunity to not only hear about these secret techniques, but actually use them to advise on the investment of huge quantities of money.
What sort of esoteric methods are we talking about? Specifically, Astrology, Numerology and Sacred Geometry. Why are they still secret? Because, in the extremely conservative world of Investment Banking, they are considered highly unorthodox, and hence illegitimate. The very suspicion that such methods are definitely being used by major "responsible" banks would cause a media scandal (and has done so on at least one occasion). Even within the firm, anyone using such techniques tends to keep them secret from their seniors. The fact that such techniques work extremely well, and allow you to forecast and trade the markets in a manner possible in no other way, is not of the slightest interest.
Astrological techniques are generally used to determine future turning points - i.e. tops or bottoms - in the market being studied. However, they can also be used to determine price levels where falling prices are likely to meet support, or rising prices are likely to meet resistance to their ascent. In my own work, I tended to use a clustering approach to determine future turning points in time. In other words, where several different astrological signals all line up to the same day on daily charts, or the same week on longer-term weekly charts, it would signal a high probability turning point. All of these would then be noted in a calendar, often years in advance, which could then be consulted on a regular basis to watch for critical time periods.
Astrological natal charts are also very powerful. As with human beings, every stock or commodity is considered to have a specific date of birth. In the case of stocks, for example, this is often the incorporation date. Hence it is possible to draw up a natal chart for a stock, and then analyze what is coming up for that stock in any particular time period, just as you would for a human being.
Remarkable astrological correspondences can be seen around major financial market events. For example, it has been found that the 1929 and 1987 stock market charts look remarkably similar. Actually, this is common knowledge in the financial industry. What is not commonly known is that when moon cycles and Fibonacci numbers are considered, it is possible to demonstrate that the two charts are actually IDENTICAL. Moreover, the 1929 crash and the 1987 crash are separated by an exact number of Fibonacci lunar cycles. The person who discovered this "Spiral Calendar" phenomenon, an options trader called Chris Carolyn, put this information to use in the 1989 "mini-crash" and made so much money, he never needs to work again!
Numerology and Sacred Geometry are also used in various forms in the financial markets. One of the truly great exponents of these techniques was William D. Gann; reputed to be the greatest trader who ever lived. Anyone interested in these techniques would do well to study his books and courses.
Most of his techniques center around the circle, and divisions of the circle. Hence 360, 270, 240, 180, 144, 120, 90, 72, 60, 45 are all important numbers in the financial markets, since they are all exact fractions of a circle (e.g. 270 is 3/4 of a 360 degree circle). All of these numbers are found to be very important in studying price charts. For example, you will often find that a market makes a top exactly 90 days/weeks/months after a previous top or bottom. Astrologers know 90 degrees to be the Square aspect.
Gann made use of all sorts of strange charts that would not have looked out of place in a magician's secret chamber. For instance, the "Square of 9" chart is a number spiral that commences with 1 in the center position. The numbers 2-9 then spiral around it to form a second layer, followed by all the other numbers in successive layers, working outward and getting progressively larger. This was just one of Gann's square charts. However, he also did number sequences in hexagons, triangles, and circles. With these tools, you can plot major market turning points, and then study relationships between them, using the circular angles defined above (e.g. the price of the top formed last week is "trine (120)" to some major previous top or bottom). There are also ways of combining such charts with Astrology.
Such concepts work on longer term price charts too. Often, you will find that a market top/bottom occurs 120 months after a previous top/bottom. Yet, this also illustrates another important market geometry. After all, what is 120 months equal to? The answer is, exactly 10 years. Indeed, it is also found that markets turn on anniversary dates; ten years, five years, one year, six months etc., after a previous major turning point, etc. By looking forward on a long-term price chart from a major previous top or bottom, you will often find other major turns 5, 10, 15 years and more into the future. Indeed, Gann kept charts going back decades and, in a couple of cases (such as Wheat), centuries!
In contrast to these TIME turning points, it is also possible to determine important PRICE levels where the market has a high probability of stopping and forming a top or bottom. The simplest method by far is to determine the midpoint between a previous recent major top and bottom. This midpoint will then form a support or resistance to the price action. Hence, it is possible to mark this point in advance on the chart, and watch to see when the price reaches it. If it starts to turn at this price level (especially if we have a turning point in time as well, as discussed above), then a potential trade is possible. There are many other techniques, besides the "50% retracement" method just described, for determining key price levels.
In truth, there are a huge number of powerful techniques available in both price and time. With these, it is possible to be well prepared for anything the market might do. Indeed, there are many traders who work 100% with these techniques ALONE, and have no idea what is happening in the so-called "real world". They do not watch CNN; they do not care what the economists are forecasting; it does not matter to them who the US/UK are bombing this month. All that matters is the price action, and what their esoteric indicators and signals are telling them. You may be surprised to hear that many of these traders do extremely well indeed.
The valuable lesson to draw from all of this is that esoteric technology has many practical applications that are actually measurable in a quantitative manner. The same divine symmetries enshrined in the pyramids and temples of Ancient Egypt are alive and active in the world today, in ways that still defy exact scientific explanation. Hence, the esoteric numbers and ratios, discovered and revered millennia ago, truly are present in all aspects of our world.
Copyright 2002, Asoka Selvarajah. All Rights Reserved.
Dr. Asoka Selvarajah is the author of "The 7 Golden Secrets To Knowing Your Higher Self". Subscribe to his FREE ezine (and get a FREE e-book when you do!) to learn easy and powerful strategies for your spiritual and personal transformation. Discover how to achieve your life dreams. Visit his website at: http://www.higherselfsecrets.com?PROX