TRANSIT ASPECT OSCILLATOR
Richard F. Schulz
The Transit Aspect Oscillator
The TAO is a scientifically modeled astronomical/astrological indicator that is hypothesized to parallel global human psychology, and similarly the price movements of the global equity markets as they reflect and respond to global human psychology. The TAO research is an extension of the work done by Donald Bradley and others.
1) On any given day, the angular separation (AS) between all the planetary pairs (Sun/Moon, Sun/Mercury, Sun/Venus, etc.) is calculated. That is a known astronomical/mathematical value between 0 and 360 degrees.
2) This AS is then inserted into the Aspectarian function that is mathematically derived from the principles of mathematics and physics. The Aspectarian is a cosine wave function that gives a positive or negative numerical value (from +100 to -100) to every degree of separation between the planets.
3) Then, for every planetary combination the resultant Aspectarian value is multiplied by a weighting fraction, a number between 0.00 and 1.00, determined by orbital and cyclical factors. The individual planetary pair numbers are then added, resulting in the Raw TAO.
4) The Raw TAO scores are then zeroed over the time period being studied (by adding or subtracting the calculated correction.) Zeroing is critical for using the TAO with real world and other cyclical phenomena.
5) Finally, the raw TAO is both averaged over various time periods (Quick TAO), and that average is summed (Slow TAO). The average of the Quick and Slow TAO is called the TAO 3 on this site.
6) The TAO, as an active component of global human psychology, acts over time on individuals, and their decision making process. Thus with the average and summation, the psychological effect over time can be seen. All of the above comes from known astronomical numbers, and goes through 100% mathematical formulae and transformations. Numbers in, numbers out. The creation of the TAO is 100% objective.
7) There are an infinite number of possible TAO's.
How the TAO is used here on this site:
Because the TAO is derived from known planetary positions, it can be calculated as far back into the past or forward into the future as desired. As a psychological indicator, when the TAO is positive and rising, people's attitudes and outlook are hypothesized to be the most optimistic. When the TAO is negative and falling, the attitudes are the most fearful and pessimistic. One measure that is used to test its statistical significance is the equity (stock) market, because it has a known psychological element, and is a measurable, real-time, changing phenomenon. When stock prices are high and rising, investors feel more positive and optimistic, and are more likely to continue investing and buy (this applies to all assets, in general). When stocks are low and falling, investors feel more negative and pessimistic, and are more likely to sell from the fear of projected or real losses.
The TAO, mathematically derived from known astronomical numbers, is closely correlated with the prices of the global stock markets of the world (astrological implication). The scientific mechanism by which the aspects of the planets correlate with human trading psychology and action (buying/selling, higher/lower prices) is unknown.
I compare equity prices over time with the cyclic oscillations (above and below the zero line) of the TAO using the standard statistical test of the Pearson Product-Moment Correlation. It is for two independent variables, and the TAO compared with equity prices qualify. After the PPRC is run, the result is the Pearson r, a value between -1.00 and +1.00. For the above graph, there is less than a 1:10,000 probability that the TAO is correlated with stocks by chance.
It is to be noted, however, that correlation is not causation. The correlation between the above TAO equity prices is just one useful tool for stock trading and investing among many. And, moreover, stock prices have, can, and will move contrary to the TAO 3 for varied periods of time.
The TAO CYCLES are created by combinations of the TRANSIT ASPECT OSCILLATOR, as applied to multiple transiting Plantetary pairs. The process is briefly described below this chart. The inflation adjusted NYSE is plotted below, with the J/S pair and one primary TAO.
The NYSE is only one small part of the global human condition, any TAO correlation with it is notable. This 40 year positive is a p < 0.0001.