The similarity between technical analysis of price charts and astrology charts

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Although both quite different subjects, astrology and currency trading have something in common. They both use technical analysis of charts, based on a skill of “pattern recognition”. They entail looking at a pictorial chart and being able to see the trends, patterns and mathematical alignments. And then both require the knowledge of the language of each system and the ability to interpret the charts.

It takes a certain mental predisposition to engage in both. I have studied astrology since I was a teenager, over 30 years ago, and when I came to trading I loved it too, as it also involves the same skill of technical analysis. It appears to stimulate both hemispheres of the brain when you look at a trading chart or horoscope chart because you need to be able to see in the picture some meaning, based on symbols.

And those symbols appear to be natural and moving according to a system or pattern. Even technical analysis of trading charts has led me to believe that price moves according to a natural pattern or law of nature, especially when I use the Fibonacci Retracement tool, which shows the mathematical adherence of price to the Golden Ratio pattern of 6.18 or 0.618, as well as other linked mathematical levels.

The trading charts show the movement of price over time. They are not alive, of course, but they do show the collective mind of buyers versus sellers globally. So the charts take on a life of their own. And the amazing thing is that this life or movement appears to follow a law of nature called the Golden Ratio.

I call the Golden Ratio “the fingerprint of god” because you find it in nature all over and all the time. It is the mathematical proportion seen the human body, the spiral sea shell and so many other natural living objects. It appears to me that holographically all natural and especially organic living forms are molded by nature according to this mathematical formula or repeated pattern. It looks like there was some intelligence behind the design.

In astrology we also see patterns, which are moving strictly like clockwork, since the solar system is a bunch of planets moving in predictable circular motion around the sun. And in astrology, as in technical analysis of price charts, we make our prediction of future trends by basing them on past history.

Obviously correlation does not imply causation, but correlation does appear to show a certain degree of pattern repetition. Ancient astronomers have been observing the movements of the planets for millennia and have seen correlations to certain alignments with events on the ground.

And so a historic body of case studies exists which the astrologer uses to predict future similar experiences. This is the same as a trader looking at past price patterns to predict future repetition of that pattern.

Astrology is, of course, steeped in symbolism, myth and legend, as is by no means to be taken as gospel, or science, but it does seem to provide some reference points in time, based on alignments within the solar system.

If you are interested in understanding more about astrology or technical analysis, based on pattern recognition and chart interpretation, then feel free to ask questions in the comments below and any member of the community can add and share their realizations and insights.

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