A study of the correlation between solar disturbances and price fluctuations

FOREX market is unique if only because it can be studied from different points of view. It can be both psychological and mathematical strategies, and regardless of the approach, the trader can achieve success. The currency market is multifaceted and its study can go on for a lifetime without bringing us any closer to the truth. What do we know about him? Well, at the very least. The market is a product of man. The ordering of economic relations, the balance of supply and demand at any given moment in time. And who gave birth to man? I daresay Mother Nature herself. Thus, the market is influenced not only by man, but also by the universe. This influence becomes evident when forces beyond human control - storms, hurricanes, tsunamis, earthquakes and other natural disasters - come into play. However, I did not mention the word "universe" by accident. Our planet is not the only one in the solar system and, of course, is subject to external influences, be it solar flares or magnetic storms on Mars. The Sun is what we are going to talk about now.

The Sun

Somehow, while studying the behavior of the Sun, I came across the Zurich Observatory's flare statistics for the period 1749 to the present day. And the first thing I saw was the same wave motion along the time track. Hearst saw the same thing in his analysis of the ebb and flow of the Nile.

Fig. 1. Periods of solar activity, averaged at one-month increments.
Fig. 1. Periods of solar activity, averaged at one-month increments.

Now let's do some manipulations with the graph - flip along the x-axis and superimpose the balance line.

Fig. 2. The original graph of solar activity.
Fig. 2. The original graph of solar activity.
Fig. 3. Modified graph of solar activity.
Fig. 3. Modified graph of solar activity.

Now let's turn our attention to the EURUSD chart for the period from 1970 to 2010:

Fig. 4. Graph of the EURUSD currency pair (I - 1970; II - 1980; III - 2000).
Fig. 4. Graph of the EURUSD currency pair (I - 1970; II - 1980; III - 2000).

Both graphs are monthly graphs. They clearly show that the decline in solar activity in 1990 did not the expected minimum of the next zigzag wave on the chart of the pair, but formed a new maximum.

Now let's move on to the daily data.

Fig. 5. Data on solar flares for 18.03.2013.
Fig. 5. Data on solar flares for 18.03.2013.
Fig. 6. Data on solar flares for 19.03.2013.
Fig. 6. Data on solar flares for 19.03.2013.
Fig. 7. Chart of the currency pair EURUSD (M30) for 18-19.03.2013.
Fig. 7. Chart of the currency pair EURUSD (M30) for 18-19.03.2013.

On the graph we see the following activity:

18.03.2013:

- 10:00 a.m. to 12:30 p.m. Moscow time;

- at 2 p.m.; 5:30 p.m. to 8 p.m. Musc;

- 8:30 p.m. to 11:30 p.m. and 24:00 p.m. Musc.

19.03.2013:

- 5:30 p.m. to 9:00 p.m. Musc.

Based on the analyzed data, we can conclude that the undoubted connection between solar activity and price fluctuations. Before the change of direction of the currency in the intraday range, the corresponding activity of the sun was recorded, which, it seems to me, may well serve natural market indicator. Solar activity data is not secret and is usually updated in real time, so writing an advisor should not raise questions. However, I remind you that for a more accurate prediction system based on solar flares a long time interval is required for analysis and time for testing on demo account.

Good luck everyone!

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One Comment

  1. Euro in non-cash settlement appeared since January 1, 1999, in cash since January 1, 2002! How can we talk about the euro schedule in the period from 1970?

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