Moon Phases & Trading
The Moon moves through a regular cycle from new moon to full moon and back. Some traders use it as a sentiment clock. Here is what each phase is associated with and how traders apply it.
New Moon
Waxing (First Quarter)
Full Moon
Waning (Last Quarter)
What the research says
Academic studies, including Yuan, Zheng and Zhu's paper "Are Investors Moonstruck?", which covered 48 countries, found that average stock returns around new moons were higher than around full moons.
The effect is small compared with daily volatility, so it is best treated as background context rather than a trading rule.
How traders use the lunar calendar
- Look for short-term highs or lows within two or three days of a full or new moon.
- Combine with the trend: a new moon low in an uptrend is a stronger setup than one in a downtrend.
- Pay extra attention when a lunation coincides with an eclipse or a major planetary aspect.
- Keep a journal of your own trades by moon phase to see if any pattern holds for you.
Educational information only, not investment advice. Market data may be delayed.
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