Here is a discussion of the Horoscope Index using Apple stock,
symbol AAPL. This example will use a daily chart. The Horoscope Index is
calculated by comparing two horoscopes. This can be setup for a stock such as
Apple in more than one way. In this example we are going to compare the
incorporation horoscope for the NASDAQ Exchange and the progressed
incorporation horoscope for Apple. See the version of this article on the
MarketWarrior owner's page for the exact indicator settings used in this
example.
When using the Horoscope index we are looking for times when
the index makes a large fast move. This is usually identified by a move between
the lower and upper boundary that occurs very fact. On the first chart for
Apple I have identified such as move in April 2007. The start and end of this
fast move represent a time window when we would look for a Change In Trend
(CIT). When these fast moves occur it represents a change in the amount of
energy affecting Apple stock. On the chart below you can see that just after
this large fast move in the Horoscope Index, Apple started a steady upward
trend.
The second chart
for Apple shows another example of a large fast move in the Horoscope Index
that moved from the lower boundary to the top boundary in just a few days. This
occurred in August 2007. The start and end of this move in the Horoscope Index
represent a time window where we would watch for a CIT in Apple. On this chart
you can see that just after this time window a strong up swing started in
Apple.
The next example
for Apple shows a large fast down move in the Horoscope Index that occurred in
May 2008. The start and end of this move in the Horoscope Index represent a
time when the amount of energy in Apple is changing and we would watch for a
CIT. You can see on this chart, Apple started a down move during this time
window.
The next chart
for Apple show a large fast drop in the Horoscope Index in October 2008. The
start and end of this drop in the Horoscope Index creates a time window for a
CIT. You can see on this chart the market fell into this time window and the
down trend stopped. The theory as to why this would happen is that the amount
of energy affecting Apple stock changed as identified by the large fast move in
the Horoscope Index.
The final chart
for Apple shows the next large fast move in the Horoscope Index. This will
occur in late April 2009. The start and end of this drop in the Horoscope Index
identifies the time window for a CIT because the amount of energy affecting
Apple will be changing at this time.