MAGI SOCIETY

 

SOLVES FIBONACCI MYSTERY AND

 

DISCOVERS NEW FIBONACCI RATIOS

 

 

November 26, 2008

 

Fibonacci is a mystically accurate way of predicting support and resistance levels for stock and commodity prices.

 

Every trader who has tested Fibonacci Ratios knows they work.  Many traders swear by them. 

 

Fibonacci really works. Even program traders and the best hedge funds use Fibonacci.

 

But why do Fibonacci Ratios work?

 

That has always been a mystery. 

 

Nobody has ever known the answer. 

 

Until now.

 

StockMarketCompass.com and the Magi Society are pleased to announce that we have solved the Fibonacci mystery and we DISCOVERED NEW FIBONACCI RATIOS.

 

 

Fibonacci Works Because of Planetary Motion Ratios

 

The Magi Society has discovered that Fibonacci works because of Planetary Motion Ratios. 

A Planetary Motion Ratio is the ratio that results when we divide one planet’s period by another planet’s period.  (The period of a planet is the time it takes for the planet to revolve once around the Sun.)  For example:

The period of Venus is 224.70 days.

The period of the Earth is 365.256 days.

Guess what? The Venus/Earth Planetary Motion Ratio is = 224.7 divided by 365.256 which is:

0.6151

This is a mere 0.003 less than the established Fibonacci ratio of 0.618.  Which means the Fibonacci ratio of 0.618 is essentially the same as the Venus/Earth Planetary Ratio.

The Mercury/Venus Planetary Motion Ratio is = 87.969 divided by 224.7 which is:

0.3902

This is just 0.0082 from being exactly the same as the Fibonacci ratio of 0.382.  Which means the Fibonacci ratio of 0.382 is essentially the same as the Venus/Earth Planetary Ratio.

 

The Magi Society developed special computer software to analyze stock market performance and Planetary Motion Ratios, and concluded a massive research project. 

We discovered that the reason Fibonacci Ratios work is that they are the same as Planetary Ratios.

 

The Magi Society uncovered the following facts about Planetary Ratios and Fibonacci:

 

 

 

 

Every Planetary Ratio is as valuable as a Fibonacci Ratio because each Planetary Ratio helps guide you so you can trade more profitably.

 

Astronomers have discovered dozens of new planets in the last decade, but if you use only the nine traditional planets, you would have eight Primary Planetary Ratios.  (A Primary Planetary Ratio is one created by dividing the planetary period of one planet by the period of the next planet in order of distance from the Sun, such as Earth divided by Mars or Mars divided by Jupiter.)

 

There are only five Fibonacci ratios.  There are more Planetary Ratios than there are Fibonacci ratios.  By using Planetary Ratios, you have the advantage of having extra ratios to guide your trading and investment decisions.

 

It is always useful to have the necessary terminology to be precise in describing new concepts, so we created some.

 

When referring to Fibonacci Ratios (0.236, 0.382, 0.500, 0.618, 0.764), we will usually use the term “Classic Fibonacci.”   But sometimes we will call them “Planetary/Fibonacci Ratios” to remind readers that every Classic Fibonacci ratio is really the same as a Planetary Ratio.

 

The Magi Society has also coined the term “AstroFibonacci Ratio” to refer to a Planetary Ratio that is not also a Classic Fibonacci Ratio. 

 

One of the AstroFibonacci Ratios is the 66.4% Neptune/Pluto ratio (the period of Pluto divided by the period of Neptune).  If you check, you will find that in the present bear market, a significant percentage of stocks found strong bottoms at their 66.4% retracement level.

 

Procter & Gamble is just one example of how well the 66.4% AstroFibonacci Ratio can work. Below is a stock chart of PG.  It illustrates how you can use Planetary Ratios to help you better predict important support levels for stock prices.

 

 

[In all the stock charts in this article, vertical lines are used to mark the beginning of each year. Each horizontal line represents a Planetary Ratio retracement level.  To the right of the stock chart is a margin area where we will give you detailed “Fibo Data.”  The Fibo Data includes price, Planetary Ratio, and the names of the planets that create the ratio. Sometimes, two or more horizontal lines are so close together that there is only room to show you one set of Fibo Data.]

 

The above chart shows PG’s stock performance for the last three years.  Note that Procter and Gamble made a low in mid-2005 at $52.75, and a high in late 2007 at $75.16.  During the bear market that followed, PG made a three wave bear move and made a solid low virtually right at the Neptune/Pluto 66.4% AstroFibonacci level.

 

66.4% is not a Classic Fibonacci Ratio but it is an AstroFibonacci Ratio.  If you were using just Fibonacci, you would have not known why PG stock held at $52.75.

 

Please examine the PG stock chart carefully and note how often an important low or high is right on one of the horizontal lines representing a Planetary Ratio support/resistance level.

 

Why Hasn't Anyone Discovered AstroFibonacci Before?

 

We encourage you to be skeptical about what we are telling you.  You might be wondering: “If Planetary Ratios really work, then why hasn't anyone else made these discoveries before?”

 

Part of the answer is that the Magi Society is really good at making astrological discoveries.  We are the world’s largest association of astronomer-astrologers and we have the best scientific research astrologers. We are also professional computer software developers and we have developed special software that has allowed us to conduct the type of research necessary to make these types of discoveries.

 

Another reason is that astronomers have recently discovered new planets.  Not every new planet has an importance to Financial Astrology and the Magi Society has included the right new planets in our research.  The result is that the Magi Society’s list of “Planets” is better than anyone else’s.  The result is that the Magi Planetary Ratios are more relevant than anyone else’s, which is one reason why we copyrighted them.

 

Below is a table showing the Magi Society’s list of planets, each planet’s period and the Planetary Ratios created by them:

 

 

 

 

When you analyze the above table, you might be wondering: “What is Ceres and what is Chiron? And where is Sedna?”

 

Ceres was discovered in 1801.  At first, astronomers classified it as a planet but later it was reclassified as an asteroid and remained so until 2006.  In 2006, the International Astronomical Union (IAU) again reclassified Ceres as a “dwarf planet,” in part because Ceres is round and has a strong gravitational field, like every other planet.  (There are over ten thousand true asteroids and they are all oddly shaped, none are round, and none have strong gravitational fields.)

 

Chiron was just discovered in 1977.  It is not a planet or an asteroid.  It was the first of a new class of solar system objects that are now called “Centaurs.” Centaurs have characteristics and properties similar to asteroids and also to comets.  The Magi Society was the first to discover the true astrological significance of Chiron.

 

By adding Ceres and Chiron to the list of “planets,” we get eleven planets and ten Primary Planetary Ratios.

 

We could also add Sedna to the list of planets, but we did not do so.  There are problems with Sedna when it comes to Planetary Ratios. Sedna is so far away and so recently discovered that its period is not precisely known so that is a problem because we need accuracy.  Its period is about 11400 to 12000 years.  So far, Sedna does not seem to generate a useful Planetary Ratio.  The highest Sedna ratio is the Pluto/Sedna ratio, which is about 0.0206.  This seems to work but is not really helpful to traders.  The Magi Society will continue to work on Sedna and its Planetary Ratios and will let you know when we have found anything helpful.

 

 

Leap Planetary Ratios

 

There is another type of Planetary Ratio that we call Leap Planetary Ratio, which is derived by dividing one planet’s period by the period of the planet that is two planets farther from the Sun, such as Mercury and the Earth (skipping Venus).  The 23.6% classic Fibonacci ratio is derived using the same principle.

 

Leap Planetary Ratios work but are not as powerful as Primary Planetary Ratios.

 

 

Reinforced Planetary Ratios

 

Since Planetary Ratios create resistance and support levels, it makes sense that if two Planetary Ratios are almost exactly the same, then their combined power would have about twice the strength of either of the two ratios by itself.

 

Our research reveals that this is exactly what happens. 

 

Whenever two Planetary Ratios are almost the same, they have two times the strength of just one Planetary Ratio.  This is because the two Planetary Ratios REINFORCE EACH OTHER.  Therefore, we call them REINFORCED RATIOS. 

 

Reinforced Ratios are twice as powerful as ratios that are not reinforced.

 

Guess what? The two key Classic Fibonacci Ratios of 38.2% and 61.8% are both nearly exactly the same ratio as two pairs of Reinforced Planetary Ratios.

 

The 38.2% Fibonacci Ratio is nearly the same as the Reinforced Planetary Ratios of Mercury/Venus (39.02%) and Ceres/Jupiter (38.77%).

 

In addition, the 61.8% Fibonacci Ratio is nearly the same as the Reinforced Planetary Ratios of Venus/Earth (61.51%) and Chiron/Uranus (60.11%).

 

 

 

 

The 46.6% Reinforced Ratio is the Most Powerful of All

 

There is another pair of Reinforced Planetary Ratios.  The Earth/Mars Planetary Ratio is 46.8%, and the Mars/Ceres Planetary Ratio is 46.4%. The average of these two ratios is 46.6% and we have named this ratio the MAGI ASTROFIBONACCI RATIO.

 

Believe it or not, the Magi AstroFibonacci Ratio is the most powerful of all retracement ratios.  A good example of its strength is the Crash of 1987, which is illustrated in the chart below.

 

 

The above chart helps you to easily see that the low on October 19, 1987 (the day the US stock market fell 509 points) was made at almost exactly the 46.4% Mars/Ceres AstroFibonacci ratio, which is reinforced by the 46.8% Earth/Mars AstroFibonacci Ratio.

 

The above chart gives you ample additional evidence of the power of Planetary Ratios.  During the two weeks following the crash, the highs and lows were confined to the 66.4% Neptune/Pluto AstroFibonacci retracement level (point A) and the 50.9% Uranus/Neptune AstroFibonacci retracement level.  AstroFibonacci Ratios were the keys to other crucial support levels, such as the low made at the 58.3% Saturn/Chiron retracement level (point C). 

 

[You probably noticed that the ratios on the chart of the 1987 Crash were ascending as you go up in price whereas the ratios on the PG chart were descending.  This is because the Magi Society Planetary software that produced these charts has the ability to “reverse” the ratios, which is something that Fibonacci also does.  In fact, the 76.4% Fibonacci Ratio is not derived directly from the Fibonacci sequence but it is really just the “reverse” of the 23.6% ratio, because you get the reverse ratio by subtracting it from 100%. We are using this same Fibonacci principle in the above chart.]

 

If you are an experienced trader, it is a certainty that you have seen stocks make lows right at the 46.6% Magi Fibonacci Ratio many times in the past, but you probably simply assumed that it was the 50% Classic Fibonacci Ratio that was working.  But it was really the Magi Fibonacci Ratio working.

 

 

The Mystery of One-Third and Two-thirds Ratios is Solved

 

For decades, traders have noticed that it was a common occurrence for stocks and commodities to find very strong support at one-third or 33% retracement.  The same is true at about two-thirds or 66% retracement.

 

But neither the 33% nor the 66% are Classic Fibonacci Ratios.

 

Nonetheless, for more than twenty years, most traders view one-third and two-third retracements as being “close enough” to the Fibonacci 38.2% and 61.8% ratio.  After all, if a stock moves up $10, the difference between a one-third and 38.2% retracement is only fifty cents.

 

But when you analyze the Planetary Ratios, you will find that there is a 66.4% Neptune/Pluto ratio. When you invert it, you get 33.6%. That is why the one-third and two-third ratios are seen so often in stock charts.  Quite often, knowing about this Planetary Ratio is what makes the difference between losing or making money on a trade.

 

Below is a recent example of how knowing about the Neptune/Pluto Planetary Ratio could have been a great help in making money on a trade.

 

 

 

As you can see from the above chart, the New York Stock Exchange Index made two significant lows (marked A and B on the chart) almost right at the 66.4% Neptune/Pluto AstroFibonacci ratio, which was 8384.72.

 

The rallies from these lows were great trading opportunities and Planetary Ratios would have helped you to catch them.  

 

 

Magi Society Offers Magi Fibonacci Upgrade for MagiOracle Software

 

If you wish to take advantage of all of this new information about Planetary Periods, you should consider purchasing our latest Financial Astrology Research software program, MagiOracle v. 7.27, and the Super Fibonacci Upgrade for the program.  When you buy the program and upgrade, you will be able to graph stocks and commodity futures and draw Fibonacci and AstroFibonacci retracement levels.  You can also download regularly updated stock and futures data for all of the S&P 500 stocks, all US traded ETFs, all major stock indices, and major continuous futures contracts.  We will soon be offering daily updates for all this stock and futures data.

 

Our clients also will be invited to our Magi Astrology workshops held regularly using conference calls so they may learn Magi Astrology.

 

Click here if you would like information about our software, or about how to join the Magi Society.

 

Click here if you would like to download our free mini-books to begin to learn Magi Astrology.

 

 

© Copyright 2008 by Magi Astrologers Worldwide Corporation