230113 - EQUINOX, SOLSTICE, AND ZENITH IN LTF CHART ANALYSIS
NOMENCLATURE
It is reference to the position of the sun relative to the Earth.
lIKEWISE
When price is over the Zenith, it is in balance. The further price is removed from the Zenith, it enters extremes, where macro-economic conditions are no longer 'normal', and where imbalances in payments are expected.
HOW TO DRAW SOLSTICE, EQUINOX AND ZENITH?
This can be arbitrary. Look for a Price Level where most rejections are found, indicated as the arrows on the illustration.
Particularly, those S&R Levels that come back into play many years later.
WHEN TO USE SOLSTICE, EQUINOX AND ZENITH?
HOW TO TRADE SOLSTICE, EQUINOX AND ZENITH?
It is useful in position trading.
It is reference to the position of the sun relative to the Earth.
- When the sun is directly over the Tropics of Cancer and Capricorn (21 June and 21 December respectively) are the Solstices.
- When the sun is directly over the Equator (21 March and 21 September) are the Equinoxes.
- A 5th line is the Zenith, the point in the day, when the sun appears at it highest.
lIKEWISE
When price is over the Zenith, it is in balance. The further price is removed from the Zenith, it enters extremes, where macro-economic conditions are no longer 'normal', and where imbalances in payments are expected.
HOW TO DRAW SOLSTICE, EQUINOX AND ZENITH?
This can be arbitrary. Look for a Price Level where most rejections are found, indicated as the arrows on the illustration.
Particularly, those S&R Levels that come back into play many years later.
WHEN TO USE SOLSTICE, EQUINOX AND ZENITH?
- In ranging markets, like FX and commodities – with Gold currently possibly an exception.
- It is useless in trending markets, as in Dow Jones.
HOW TO TRADE SOLSTICE, EQUINOX AND ZENITH?
It is useful in position trading.
- Price is expected to bounce up and down in its channel, until it breaks. Solstice, Equinox and Zenith are very established S&R zones, and not easily broken.
- But when it breaks, price WILL go to the next S&R line.
- When it hits a Solstice, Price will go back all the way to the opposite Solstice. It may take a few years, but it makes 2008 and 2020 are easy trades with a lot of money to be made, having confidence in this method alone.
- Assume normal price levels when Price is in between Equinoxes. Normal economic conditions. Normal Balances of Payments.
- When Price Action is ranging near a line, distribution and accumulation is taking place. Look at the lower TF to choose your side of the market.
- Expect the Zenith to be a reversal point, unless price is approaching at a great speed in the middle of economic crisis.
- From a macroeconomic and geopolitical point of view, breaking the Zenith is an event that changes the world. When price is trading below the Zenith, it is a sign of recession, taking a bearish stance gives more probability of being profitable, until something ‘weird’ happens, like oil futures dipping below $0.00. Conversely, when Price is Trading above the Zenith, probability dictates to take a bullish stance.