Lunar cycles and Golden Ratios: exposing the weird world of chartism

City Wire
Wealth Watch

United Kingdom
by David Campbell on Jun 03, 2011

The constituent parts read like a discarded plot line from The Da Vinci Code: the ancient Greek mathematical principle of the Golden Ratio, elements of chaos theory and systems analysis, lunar cycles, and the mysterious interaction of human behaviour with the natural world.

Its adherents – inherently cagey, and as they see it, guardians of information that can hold the key to remarkable wealth – are not keen to let the outside world in on their secrets. Welcome to the shadowy world of cyclical analysis.

While the examples above are at the fringes of a discipline that is essentially nothing more than an attempt to read the patterns of market behaviour, they are representative of its general approach.

Rumoured – and objectively, exceptionally successful – proponents of a correlation between markets and the lunar cycle include both George Soros and John Templeton.

‘As long as there is a logical link between natural life cycles and the markets then I think that sort of cycle analysis is valid,’ says Murray Gunn of The Society of Technical Analysts.

‘There has to be a link to natural cycles because as we are part of nature and mass human psychology drives the markets by exhibiting herding behaviour just like other natural animal forms. Nature has a rhythm and so it is not such a massive leap of faith to observe and believe the human-driven markets have a natural rhythm too.’

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About Leslie Carol Botha

Leslie Carol Botha, WHE • Graduate from the National Institute of Whole Health • Co-author of Understanding Your Mind, Mood and Hormone Cycle • Internationally Recognized Expert on Hormones and Behaviors • Member of the Society for Menstrual Cycle Research • Program Director for Early Intervention and Prevention for At-Risk Adolescents - Gia Allemand Foundation for PMDD
This entry was posted in climate-Lunar, Cycles-General, cycles-Prediction, Economy-General, economy-Stock_Markets and tagged , , , , , , , , , , , . Bookmark the permalink.

1 Response to Lunar cycles and Golden Ratios: exposing the weird world of chartism

  1. Ray Tomes says:

    Many people, especially those using Elliott wave theory, claim that there are golden proportions in the retracement of markets (61.8% or 38.2%) so I did an analysis of many markets. There was no evidence of such returns. It is a myth. Years ago I attended a talk on Fibonacci multiples of the lunar month as special intervals after which market extremes occur. I cannot find evidence for this in the data either.

    Of course the 4.43 year Lunar cycle (half o 8.85 years) is found as a common cycle in many other things. That cycle can be understood as real effects on tides on Earth.

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