de Leon Azimuth

The Y-axis has 3 values:

The lunar cycle is approximately 29.53059 earth days long. However, for the purposes of this indicator, that approximation is not good enough and a more precise celestial formula is used.

When the market is trending up, LC is colour coded blue. When the market is trending down, LC is colour coded red.

LC clearly shows whether the market is up-trending or down-trending during the 4 moon phases. It is not designed to predict if it will up trend or down trend tomorrow.

Astrological Significance

The significance of this time is that it represents new ideas, a new burst of energy, new beginnings or the start of a period of growth. It is no coincidence that many farmers plant their crops at this time.

In trading terms this does not mean that bottoms always occur around New Moons. Instead, it suggests an opportunity for a new bear move or a new bull move to commence (new beginnings).

Waxing is the period from New Moon (when completely obscured) to Full Moon (when completely un-obscured). This time is associated with a period of growth, with focus and energy.

In order to get where it is going, during the First Quarter Moon, markets may experience some resistance. This usually translates to swings in the market or volatility.

The Full Moon is often associated with wierd and irrational behaviour (not to mention stories of Werewolves).

In astrological terms it often signifies a time of fruition, climax or a time of harvest. This can of course be interpreted as both good or bad, depending on how things have developed since the New Moon. In trading terms markets might abruptly have a change in sentiment. Emotions can run quite high during the Full Moon and is often a time when people quit.

Waning is the period from Full Moon (when completely un-obscured) to New Moon (when completely obscured). This time is associated with gathering, conservation, completion and finally a time to rest.

The 3rd Quarter Moon represents a time of acceptance and less opposition. Usually this is a time when it is easier to get from A to B and generally less resistance.

In trading terms it may not necessarily mean a quieter time for the market. Instead it can mean a market may move without much resistance. If it is a bear market this can signify sharp falls.

To summarise, the moon has 4 phases which may be thought of as a lunar spring, summer, autumn and winter. Major turning points often occur around the Full Moon and New Moon.

This is your starting point for research.