Unleashing the Potential of Vedic Astrology: Analyzing Planetary Influences on Stock Market Trends

Abstract:

In recent years, top hedge funds have gained a competitive edge by leveraging astronomical data to outperform benchmark indices. Inspired by the success of traders like WD Gann, who used planetary data to predict market peaks and troughs, our research explores the use of Vedic astrological transit data as an alternative source for predicting daily stock market direction and short- to long-term trends. By analyzing over 120 years of planetary movements and applying Vedic astrological principles, we discovered compelling correlations between planetary positions and market patterns. This article presents our findings and proposes future directions for building a machine learning model that incorporates planetary data to enhance prediction accuracy.

Introduction:

The application of Vedic astrological principles in financial markets has piqued our curiosity, driven by the remarkable track record of traders like WD Gann and their association with commodity trading. Our research involved creating a comprehensive dataset of planetary movements spanning more than a century and analyzing the invaluable insights derived from Vedic astrology. By examining long-term charts of various assets, we observed complex patterns that were challenging to decipher manually. However, with the assistance of AI models and feature engineering, we achieved notable success in uncovering significant correlations between planetary positions and market trends.

Key Findings:

Planetary Opposition and Square Positions: We found a strong correlation between market trends and planetary positions reaching the opposition (180 degrees) or square positions, known as the kendra position in Vedic astrology. These alignments often signaled important turning points in the market.

Volatile Periods and Planetary Stationary Movements: Market volatility exhibited a robust correlation with planetary movements during stationary periods. When planets experienced no speed and lacked direction, it frequently coincided with turbulent market conditions.

High-Speed Planetary Movements: Bullish and bearish trends in the market were often associated with high-speed planetary movements. These events were found to be cyclical, suggesting a recurring pattern that impacted market sentiment.

Triple Transit of Jupiter/Saturn: We discovered a noteworthy correlation between the triple transit of Jupiter and Saturn and the cup and handle technical indicators of the market. This alignment often signaled potential opportunities for traders.

Future Research and Collaboration:

Expanding this research requires considerable resources, including financial experts, machine learning specialists, and extensive data. We are actively seeking partnerships to further develop this area of study. The proposed scope involves building a machine learning model using planetary data spanning over 120 years and testing its accuracy across multiple asset classes, such as oil, gold, and prominent stock market indices like DJIA/S&P.

To enhance prediction accuracy, we recommend incorporating this alternative source of Vedic astrological data into existing models that utilize fundamental, technical, and sentimental analyses. Aligning these different approaches holds the potential for greater accuracy in market predictions.

Furthermore, future work should focus on expanding the model's capabilities to predict long-term trends over 5 to 10 years, short-term trends ranging from 1 to 6 months, daily classifications of bullish or bearish sentiment, and even daily price predictions.

Conclusion:

The convergence of Vedic astrological transit data and AI presents a promising avenue for predicting daily stock market direction and long-term trends. Our research findings demonstrate compelling correlations between planetary positions and market patterns. As this field continues to evolve, integrating Vedic astrological insights with existing financial models has the potential to enhance prediction accuracy and offer new insights for traders and investors. By embracing this interdisciplinary approach, known as AstroAI, we can unlock novel opportunities in the ever-evolving world of financial markets.