SECRETS OF FINANCIAL ASTROLOGY

By Kenneth Min

Lesson VIII

The 3-day Solar Time Window is an important indicator for identifying true short-
term trend reversals. What exactly makes one price high (or low) more significant
than another? This is the theme we'll be exploring for the next two lessons.

The 3-bar reversal technique is an excellent tool for identifying the cyclical
characteristics of a stock or futures contract. I explained this at length in Lesson 4 of
this series. A confirmed high (or low) can only occur when there has been a
legitimate reversal off a 3-bar high or low. For example, take a look at the daily
price chart of the NASDAQ 100 Index tracking stock (or QQQ). Note that the stock
made a 3-bar intraday high of 84.12 on 11/06/00. The next day (11/07) saw prices
drop below the prior three days' lows (or 81.25). That's called a 3-bar downside
reversal, and it 'confirmed' the 11/06 high of 84.12 as an important short-term
resistance level.

That 11/06 high of 84.12 occurred during a 3-day Solar Time Window (11/02, 11/03
& 11/06). If you refer back to the last lesson, I listed the dates for the most recent
windows. Whenever a 'confirmed' 3-bar high or low occurs during the Solar Time
Window, you need to give that point added weight! A subsequent break above that
84.12 high would indicate a bullish trend reversal. Also, since 11/06 was a
'confirmed' high, you must now look backward for the prior 'confirmed' 3-bar low.
That occurred on 10/26, at 73.62. If prices subsequently break below 73.62, it would
be a bearish trend confirmation.

If you only use the Solar Time Window highs and lows for your trend analysis, you'll
get a much clearer picture of the true short-term trend of a stock. Let's continue
with our example of the QQQ. It broke below 73.62 on 11/09, and thus gave a
bearish trend confirmation. Note that the 'confirmed' 3-bar low of 11/13, and the
'confirmed' 3-bar high of 11/15 did not relate to a Solar Time Window date.
Therefore, they are not given any importance. In fact, it really isn't until 11/27 that
there is a time window match to a 'confirmed' 3-bar high.

The 11/27 high of 72.93 occurred during a Solar Time Window, which meant that a
subsequent break above that high would constitute a bullish trend reversal. A break
below the 11/22 low of 66.50 (the prior 'confirmed' 3-bar low) would constitute
another bearish trend confirmation. Note that on 12/08 the QQQ reversed its short-
term trend to bullish by moving above 72.93. However, 12/08-12 was also a Solar
Time Window period. In the next lesson, I'll show you how to handle this situation.