The Moon Phases indicator shows different moon phases in trading on a predefined chart. The ‘moon phases’ are often used to analyze stocks and the foreign market. On the Chart, the presence of a dark circle shows a full moon, while a bright circle indicates a new moon. Growing and Waning are terms used for the bars that form between the full and new moons and have different colours.
Moon Cycles in Markets
Lunar Phases
Studies have established a link between Full and New moons and the stock market’s performance. In general, stocks have a habit of performing better when the New Moon approaches. There is also a weakness in prices on the days around the Full Moon. One primary observation is that significant market crashes have often occurred approximately 3 days before a New Moon sets in, usually between September and October.
Moon Phases Indicator | Technical Indicator Click To TweetHow Can You Use Lunar Cycles in Trading?
The moon phase indicator is a tool that helps you watch how lunar cycles impact markets due to their subtle gravitational implications on Earth. (Click this link to access an economic calendar for your trading strategies )
The lunar buy-sell strategy primarily focuses on buying stocks on the new moon and selling them during the next full moon. You will need to sell the stocks in 14 to 16 days. Trading per moon phases may make a big difference. On the contrary, buying your stocks during the full moon and selling on the new moon may considerably underperform the buy-hold strategy.
Thus, it shows that there exists a correlation between prices of indexes and phases of the moon. This is because the new moon typically points to low energy. On the other hand, the onset of a full moon presents a time of fruition, high energy, and spending.
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