The Sun, The Moon and Silver Market is An excellent book for those who are primarily interested in timing the Silver market in 2-3 day intervals. Although the book thoroughly covers a long-term approach to trading Silver – for moves of 10% or more – it is a quantitative study that is more focused upon the shorter term moves of only 3% or greater.
Introduction:
Is there a correspondence to the sign or phase of the Moon and the direction of Silver prices? And if so, can this correspondence be helpful in the trading of Silver futures? This was the initial question that led to this study. It is a question I had asked m¥self over the course of several years of trading the Silver market, perhaps in large part due to the fact that I had oftentimes noted such correlations .
For example, I had observed several cases wherein the price of Silver moved up sharply when the Moon was in the early degrees of the signs Aries , Cancer, Sagittarius or Aquarius . I also observed that prices just as often moved down sharply in the later degrees of these same signs and into the early degrees of the next . This knowledge alone became the basis for a ~art of my trading strategy· That is, I would try to position myself on the long side of Silver just before the Moon entered these signs . I would wait patiently, like a hungry cat stalking a mouse, until a technical buying set-up unfolded during this time frame .
I then entered at the market ~ or placed a price limit order. Likewise, I would wait 1-3 days for a technical sell signal to develop as the Moon entered the later half of those same signs, then take profits, reverse, and go short . This trading strategy worked well when the proper technical set-up was in effect . This brings us to a very important point and the first rule of this book: trading by geocosmics is not a stand- alone system. For that matter, I am not aware of any ” stand alone system” in trading – and I’ve seen a number of them in my career.
The most successful trading plans are t hose that combine various factors . It is my opinion that one technical or timing study must be supported by another, if one is to be a successful short- term trader . This is most certainly true with “timing” studies like cycles, various parts of Gann, and geocosmics or astrology. That is, each of these studies is exceptional in defining a “time band” in which a reversal of price is very likely . The level of accuracy in defining such a “reversal time zone” is probably 60-80%, depending upon the amount of “orb” allowed for such a reversal .
The greater the “orb” of time allowed away from the “ideal” or “median” projected time change, the higher the level of accuracy. However, the further away from the “median” time allowed for a time band of potential reversal, the greater the amount of risk probable to a trader of commodity futures. Exposure in the market is risky, and the quicker a trader can spot a change in direction of trend, the greater his/her potential for profit.
Geocosmics, cycles, or some of the Gann techniques, can outline a time band in which there is a high probability of change in the direction of market prices. However, when the time zone is entered, a trader requires other technical or pattern recognition studies to help zone in more precisely when the change is in fact unfolding . Technical studies that measure support and resistance , overbought and oversold conditions, and pattern recognition studies like Elliot Wave, may be utilized on a number of short-term time frames (i . e . daily , hourly, even 5-minutes) to hel~ define this moment once prices enter the time band identified by the “timing studies . ”
Therefore a timing methodology, like geocosmics, performs better {i.e . yields greater potential profits) when it is backed up by some technical study {or studies) . The reverse is also most definitely true . That is, a technical, cyclical or pattern recognition trading program may be greatly enhanced when used in combination with geocosmics. So let us be very clear up front: the material in this book may be a very valuable adjunct to one’s trading strategy . However, like most studies on cycles or timing factors, it is simply a matter of probabilities, not inevitabilities . The Silver market does not bottom every time the Moon enters the sign of Libra or Aquarius while the Sun is in the sign of Libra.
However, it does so often enough that if other indicators {technical, Elliot Wave, or whatever) also suggest a low is forming while the Moon and Sun are in this relationship, the probability of a low forming at that time is greatly increased . The bottom line, then, is that this study will likely be a valuable timing tool for short-term Silver traders. In the course of trading commodity futures, timing is critical.
Contents:
- 1 Getting Started – Basic Astrology
- 2 Qualities and Elements
- 3 Planetary Aspects
- 4 The Study
- 5 Short-Term Troughs
- 6 Short-Term Crests
- 7 The Sagittarius Factor
- 8 The Primary Cycles
- 9 Long-Term Lows
- 10 Long-Term Crests
- 11 Combinations In Both Long and Short-Term
- 12 Aspects and Stations
- 13 Putting It Altogether For a Trade
- 14 Ten Trading Tips In Silver Futures
The Sun, The Moon and Silver Market: Secrets of a Silver Trader By Raymond A. Merriman PDF
