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A Traders Guide to Financial Astrology: Forecasting Market Cycles Using Planetary and Lunar Movements by Larry Pasavento

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CHAPTER 8

Testing the Effect of the New Moon on the Market

image Introduction

Efficiency testing is a method to measure the actual market behavior around a specific event. It allows one to create a visual image to see trends before and after an event. By using efficiency testing, one can grasp an intuitive understanding of the effect of an event on a market. Efficiency tests are specific to the market tested. They can determine specific behaviors before or after an event exactly by the day. In this chapter, an efficiency test will be analyzed for the Dow Jones Industrial Average across the years 1885 to 2013.

Key Concept Questions

  • What is efficiency testing?
  • What does an efficiency test measure?
  • What is the law of large numbers?
  • Why are the inner planets better to gather statistical data?
  • What is the purpose of a control?
  • What is meant by the phrase “Don't confuse brains with a bull market.”
  • What is means by the phrase “A rising tide floats all boats.”
  • What is walk forward analysis?
  • What is the behavior of the market around the new moon?
  • What is the behavior of the market around the full moon?

image Case Study: The Sun and the Moon

An efficiency test is a way to measure the actual behavior of the market before, during, and after a transiting aspect. Efficiency testing is a critical first ...

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