W.D. Gann's Techniques

Day Trading the Moon By Ted Phillips

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I am going to introduce two astrological trading methods I use regularly to day trade based on the aspects of the Moon. These methods alone will dramatically improve your timing and put the probabilities strongly in your favor. The first technique has to do with the timing of intra day reversals based on the aspects of the Moon during market hours. Reversals during the day can also occur at other times when there are no exact aspects from the Moon, but this is based on a factor faster than the movement of the Moon. It is based on the rotation of the earth itself. This is another subject.

The second technique is simply setting up the correct planetary price lines based on the harmonics or aspects of the Moon during market hours. Reversals will occur very often at these price levels if the planetary price harmonics are set up properly. When both of these two techniques are combined together, we have precise price points at specific times of the day to be prepared for reversals.

The most significant time periods of the trading day when reversals usually occur are when the Moon forms an exact aspect to a planet. Reversals can also occur during the day when there are exact aspects between the planets themselves. The live planetary clock in the Galactic Trader program will inform you in advance exactly when these lunar aspects will be occurring during market hours. See Chart example illustrating the times of the day when the aspects occurred on August 21st.

From my own experience, the reversals do not always occur at the precise moment of the aspect. However, most of the time, a reversal will occur at the time of the aspect or very close to it. This is why it is equally important to have technical confirmation before entering the trade. Once you know the time of the day to watch for a reversal, look for this to coincide with one of your favorite technical chart patterns or for prices to be at one of the correct planetary price lines. Finally, enter the trade using one of your technical indicators. Of course, always immediately place your stop loss order once your trade is placed using this technique to limit your potential loss based upon your predetermined risk exposure. No method works all the time, including this one.

On the same 5 minute chart example is an actual trade I made illustrating the use of both timing techniques. I circled the price bars when the Moon made exact aspects to planets during market hours. In this example, there were three aspects (geometric angles) made from the Moon. I have also included the planetary price lines based on the aspects of the Moon for the day. On the chart are the planetary lines for the planets Venus, Pluto, and the No. Node of the Moon set at the 12th harmonic, (30 degrees). The Nodes of the Moon are the points where the path of the Moon intersects the ecliptic. After adjusting the factor, this displays the planetary lines at 3 pt. increments on the 5 minute chart for the Mini S & P.


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For those new to this concept, further explanation is provided. The longitudes of the chosen planets are first converted into price. For example, the geocentric longitude of Venus on August 21st was 14 degrees of Libra. 14 degrees of Libra equals 194 degrees of longitude. Based on the factoring for certain markets and the different time frames to be used, 194 can also be 19.4, 1.94, or 1940. This is a result of simply multiplying or dividing by 10. On a 5 minute chart of the mini S & P, a factor of (-1) decimal point is most practical for day trading. So this would equal 19.4 plus 3 pt. increments at the 12th harmonic. The Galactic Trader program will automatically adjust the planetary price lines based on the different factors you can choose and convert the planetary lines to the current price levels of the market you are trading. Another chart could also be drawn with Venus at 194 plus 30 pt. increments as well. This would be more effective on perhaps a daily, weekly, or monthly price chart for the S & P. A harmonic is simply the circle of 360 divided by a number, such as 360/12 = 30. On this day since there is a sextile, (60 degrees), and a trine, (120 degrees), between these planets and the Moon, I have set up the planetary lines at 30 or the 12th harmonic. 60 and 120 are multiples of 30. 30 is also ½ of 60 and ¼ of 120. This is simple enough. These are the correct harmonics based on the sextile and trine aspects that can be used. After adjusting the factor, the three planetary lines for Venus, Pluto, and the No. Node all come together at these precise planetary price lines at 3 pt. increments.

The first aspect of the Moon was a trine to Venus at 11: 57AM, CDT. This was a short term top for about 30 minutes. I did not take this trade or go short because of the up trend and also because the reversal did not occur at the planetary price line. For a significant change in trend, I want price and time to be equal. This is what W. D. Gann always said in other ways. When prices are at the correct levels or planetary lines at the time of the planetary aspect, these two critical factors are equal.

You will also note that there were other significant CIT’s during the day at the planetary lines. These were just after the open and around the times of 10:00AM, and 02:00PM, CDT. The timing of these reversals was not based on exact aspects of the Moon. However, since they occurred at the correct planetary price levels based on the aspects of the Moon occurring during market hours, these trades could also have been made once technically confirmed.

The next set of lunar aspects occurs around the same time period. The Moon will sextile Pluto at 12:51PM, then will trine the No. Node at 01:13PM. At the time the Moon was sextile Pluto, it did not bring a reversal. It first appeared to be a double top, but this was not technically confirmed nor did it occur at the planetary line. No trade was made here either.

At 01:13PM, CDT, the Moon was trine the No. Node. The high occurred at the precise planetary line at the precise time. This was almost the exact high of the day as well. Price was also slightly above the dynamic trio, an excellent technical indicator from the Fibonacci Trader program, indicating that price would be hitting resistance around this level. This is based on the next higher time frame which is 60 minutes. When prices broke through the Dynamic trio own indicator, the red stair steps below prices based on the 5 minute time frame, this short trade was also technically confirmed. This was my short trade of the day. It is screaming at you to take profits if you are long or to go short at this time.

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About Gann Course Team

The Gann Course Blog Team consists of seasoned traders, financial analysts, and Gann method experts dedicated to demystifying W.D. Gann's powerful trading techniques. With decades of combined experience in applying Gann's principles to various markets, our authors bring a wealth of practical knowledge and insights to every article.

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