Method of true eclipse: general concepts, methodology description and practical application
I continue describing unknown Gann methods that have been unfairly forgotten, but still remain efficient despite their inconsistency and mysticism.
Those skeptics, who responded to the previous articles devoted to Gann by nothing but irritation and laughter, I suggest breathing deeper, because in this final work I shall talk about the influence of lunar and solar eclipses on the market and the methods of trading according to astronomical phenomena.
The researches of William Delbert Gann's trade methods note that, despite the many-sided nature of his approaches, the key factor, determining his trading decisions, is to study the position of the Sun and the Moon relative to the Earth and the patterns that exist between these celestial bodies and the market situation.
Gann focuses on four types of lunar and solar eclipses in trading, namely:
Total lunar/solar eclipse
Annular solar eclipse
Penumbral lunar eclipse
Partial lunar/solar eclipse
You can find the full list of solar eclipses for the entire 21st century here:
The list of 21-century lunar eclipses is here
I won’t distract from the main topic of my articles and so I’ll avoid a long lecture about lunar and solar eclipses in general. There is plenty of information on the Internet, as well as, in scientific books, explaining these phenomena in detail. I will rather describe the eclipse not from astronomical point of view, but as an astrological phenomenon and its influence on financial markets and trading instruments.
Since solar and lunar eclipses are quite frequent phenomena and when making forecasts on a large scale such as a quarter and a month, both events can occur in the same period. Gann ranked the events in terms of their importance and the power of influence. It looks like this:
The most powerful event is the total solar eclipses
The second strongest events are the annular and the penumbral lunar eclipses
A weaker influence is made by the partial solar and lunar eclipses
The weakest effect is made, according to Gann, by the total lunar eclipse
Gann’s true eclipse method is based on the search of the above phenomena and matching this date to other astrological events.
To explain the application of this model clearer, I’ll describe it step by step.
- Identify the eclipse date;
- Look for any astrological events and combinations of celestial bodies. I described all these phenomena in previous articles; I’ll briefly explain the main ones here:
- The celestial body ingress into a new Zodiac sign;
- Any planetary combinations (conjunction, opposition, semisextile, sextile, trine, square);
- The beginning and the end of the retrograde motion;
- Moon crossing of the celestial equator.
- All the above events, taking place in the same day before or after the eclipse equivalent to the same events on the day of the eclipse itself.
- The trend rarely changes at the time of the eclipse, but it often happens close to this date. If the market reverses exactly on the eclipse date, pay attention to the planet aspects, featured at that time. The trend is likely to reverse again if the same aspect repeats.
After the eclipse, identify the date when the Moon will cross the celestial equator and the date when the Moon will make a full circle and return to the place that was during the last eclipse. If in these days there are any of the above astrological events, then it is considered to be significant and potentially important for the studied market.
You don’t look at the final date of the Moon full circle if the market determined the local high or low at the time of eclipse.
So, we have all the tools to utilize this method now. I suggest we try it in practice right away.
The chart above presents the projections of dates when there were lunar and solar eclipses. Lunar eclipses are market with blue, solar eclipses – with red. As Gann said, these events rarely match to the trend reversal point, but if they do, such cases require special study. In our example, the interval is taken from last year until the present time. As can be seen from the chart above, the lunar eclipse was the very first eclipse in the period studied, it was on January 31, 2018.
Mind the Moon position on this day. It is in the Leo sign, at 121 degrees according to the celestial protractor. As you see from the cosmogram above, on the same day, the Sun starts conjunction with Venus; however, the list of astrological events is far from being complete.
On the next day, the situation looks far more interesting. The Moon is in opposition to Venus, the Sun forms a semisextile with Neptune. Mercury is at 300 degrees and is about to cross the border between Capricorn and Aquarius, and I don’t even mention the conjunction of the Sun with Venus, i.e. in total, there are 4 astrological events. Let’s go back to the third step of the Gann methodology above, suggesting that all events following the eclipse on the next day are equivalent to the day of the eclipse itself. Therefore, this eclipse, despite its weakness according to the eclipses ranking, can be a sign of a strong movement in future.
Here, the statistics on special planet combinations would be useful. I have already performed this exercise in a simplified form, but, unfortunately, I didn’t collect statistical data on the planet combination of sextile.
As you see from the chart above, this lunar eclipse really became an early sign of a strong market movement. Already on the next candlestick, February 1, 2018, we understand that the trend did not reverse, and therefore the local bottom was not formed (see step 6 of the methodology). It means that we can fully apply step 5 in the analysis and study the dates of equator crossing the Moon full circle (see step 5 in the methodology above).
It is clear from the figure above that the Moon crossed the equator on February 5. On the same day, there was the square of Venus and Jupiter, the Mercury-Mars sextile and the Mars-Saturn semisextile. I don’t have any statistics concerning sextile and semisextile, but I have some observations, regarding the square of Venus and Jupiter (Unknown Gann Method: Cosmogram (part 5). Based on this information, in 100% of cases, this planet combination results in the trend reversal.
The chart above shows that everything happened exactly as the stars had predicted and on the very next day after the spike just below 6000 USD, the local bearish trend started to reverse.
According to step 5 of Gann’s true eclipse method, the next important date for the analysis is when the moon makes a complete circle and comes to the place where it was during the eclipse. As can be seen in the figure above, this date is February 28. It was on this day, after January 31, that the Moon made a full circle and returned to the Leo sign with the first step at 129 degrees.
As you see from the figure above, there were many astrological signals on that day. The figure above shows the square of Mars and Venus. It also shows that many celestial bodies enters the sign of Pieces. Such multiple signals as a rule result in strong volatility in the market and oppositely directed movements.
The Mars-Venus square is 100% bearish signal, according to my statistics. As you see from the chart above, on that day, February 28, there was strong volatility. The price rose at first and even broke though the previous daily high (it is market with green circle in the chart above); next, it dropped down and, eventually, the candlestick closed even lower than the previous closing level. As it clear from the price chart, bearish signal worked out quite accurately and the the cluster of planets added uncertainty and volatility to the market, so that, in general, this behavior was natural from an astrological point of view.
Here, I have basically completed the description of how to apply Gann’s true eclipse method on the example of the lunar eclipse. As the experiment has proven on the historical data, one can well anticipate the market behavior by means of astrology; however, to improve the accuracy, one needs extended statistical base on how the market responds to a particular planets combinations and other astrological phenomena.
I want to add that for the solar eclipse, this method works in exactly the same way. You only need to keep in mind that the most powerful eclipse is the total solar eclipse, and the least one is the total lunar eclipse, and don’t forget to pay attention to the Moon position to work out step 5. Moreover, here, the position of the moon matters regardless of what kind of eclipse you analyze.
Now let's try to look into the future.
If you look at the calendars of lunar and solar eclipses, you’ll see that, in general, in 2019, only one month, July, is interesting from the point of view of the true eclipse method. During this period, the total solar eclipse will occur, which is the strongest in the ranking, and the partial lunar eclipse, which of course is less important, but, in general, only emphasizes the significance of this period.
I marked these events with vertical dotted line in the chart above. The red line on July 2 is the total solar eclipse. The partial lunar eclipse is on July 16.
As you see from the figure above, on July 2, there are the following signals:
- Conjunctions of Mars with Mercury and the Moon with Venus
- Sextile of Saturn and Neptune
- Semisextile of Jupiter and Saturn
In addition, the Moon is at 87 degrees in the Gemini sign.
From the entire above list, I have statistics only for the conjunction of Mars with Mercury.
Unfortunately, in history, too few of similar combinations are entered into the base; but from what happened, we see, in fact, either a trend reversal or a bearish momentum. It is possible that there will be both.
The shift of the cosmogram by one day does not radically change the situation; so in order to surely understand the direction of this eclipse, we could refer to step 5 of the method and analyze the dates when the Moon will cross the equator and make a complete circle.
However, looking ahead, I can say that there are no significant signs that could clearly be interpreted as signs of directional movement on the date of the Moon crossing the equator on July 9, or at the time the Moon full circle, on July 29.
To find out what this solar eclipse mean, I need to analyze the nearest lunar one, which can’t but be influenced by the first eclipse due to its close date.
As it is clear from the figure above, 16.07.2019, on the day of the partial lunar eclipse, there are no powerful astrological events except for the semisextile of Jupiter and Saturn. However, if you look at the planets dynamics, you can see that Mercury starts its retrograde motion on this day.
As I wrote in my previous articles, this phenomenon is one of the strongest signals of the trend reversal. The coincidence of this phenomenon with the date of the lunar eclipse only amplifies this signal.
Therefore, I may assume that the global bearish trend is likely to reverse during this period, or, at least, there should be a try to do it.
In conclusion, I want to add an obvious fact that this method must be used together with Gann’s forecasting techniques, describe in previous articles.
The true eclipse method aims at identifying the areas of the greatest tension in the market and highlights them among other critical levels that have been identified by means of such tools as the square of 9 and the Pythagorean method.
Of course, one of the important and necessary tools is statistics on specific combinations of planets and other astrological phenomena, and how these events correlate to the price movements of the instrument studied.
It is a really great job that is reasonable to perform by joint efforts. So, if this number of known Gann’s methods seems interesting to you and you want to make a contribution in collecting the common, global base of knowledge about the correlation of astrological events with the Bitcoin price movements, write your comments below this post and I will definitely contact you.
That is all for the series of educational articles, devoted to studying and description of unknown Gann’s methods.
I wish you good luck and good profits!
PS. If you agree with my ideas, write “+” in the comments; if you don’t agree, put “-”. If you liked the post, just write thank you, and don’t forget to share the post. It is easy for you and I will be very pleased :)
Stay informed on the latest cryptocurrency news, follow my posts on the blog.
I recommend trying to trade with a reliable broker here. The system allows you to trade by yourself or copy successful traders from all across the globe.
Telegram channel with high-quality analytics, Forex reviews, training articles, and other useful things for traders http://t.me/liteforex.
Price chart of BTCUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.