However, in a plainer language it works as follows.
Astronomical foundations and different systems
Astrology is strongly tied to astronomy and uses a lot of astronomical tools. It is however based on older Geocentric astrology. Not because astrologers believe that Sun revolves around the Earth and not the other way around, but because this system was build based on that older astronomy.
Planets are observed relative to the constellations as they were on the sky at something like 1000BC to 2000BC in Babylon when this system was created. On our current sky constellations have since moved sideways, however tropical astrologers use old astronomical records to keep track of the signs.
Sidereal Indian astrology instead follows the current constellations. In sidereal each sign has almost moved one step back. To the point where you can equate sidereal Scorpio with tropical Libra, sidereal Libra with tropical Virgo and sidereal Virgo with tropical Leo. The signs descriptions and their characteristics work match better this way. That is something to keep track of when converting from sidereal into tropical and so on.
There are some other esoteric variations such as Draconic Chart, but I do not use them.
Natal Chart
To understand someone's personality, you need their natal chart. you can build one using, Astrodienst website. All you need is person's date, place and time of birth. Without accurate time of birth, you cannot have accurate angles and houses, but will be able to have reasonably accurate placement of planets in signs.
Ascendant changes sign approximately every two hours, so person born at 2AM will have different ascendant compared to a person born at 5AM of the same day. Descendant, Midheaven, Nadir and all houses are tied to ascendant and shift together with it.
Planets
Each planet is one aspect of a personality. All platens, aspects and angles together add up to a complete picture of one's personality.
Each individual planet is responsible for one particular aspect of one's personality. For example, mercury governs tactical thinking (that is ways of solving problems), as well as manner of speech.
Signs in which planets are located determine how this particular function or role plays out. For example, person with mercury in Gemini would like to talk a lot, while person with mercury in Scorpio in contrast would not say much but will listen and keep secrets.
Other planets and angles each too has their own role in a complete personality. There are separate descriptions on different astrological signs that outline how say Venus, Mars or Jupiter plays out depending on the sign they are places. Of course, some critical thinking is needed when analyzing all that.
Sun and Moon
Sun has special importance. Sun governs aspirations, objectives in live and fundamental values and such. It is like a boss it sets objectives for the rest of the crew and can override other traits to the extend in the name of higher cause as it is understood by the individual.
What this higher cause is, is the determined by the Sun's place in the chart, its sign.
That is person with Sun in Libra will have different aspirations in life compared to one with Sun in Cancer or Capricorn. People with different Sun placements will disagree over what is important in life and what is not.
Sun determines your highest calling. More selfish person would call it their ego and aspiration. More selfless might instead call it a mission or obligation to the world. End result is somewhat the same. Sun placement determines in which way you want to do it.
Moon too has a special role associated with reflective instincts of the person. Unlike Sun it does not confer any aspirations or worldviews, but influences the person in indirect, reflective instinctual ways.
Unlike Sun that allows you to create something and give it to the world, Moon determines your needs instead. That is what you want and expect from the world. What you believe world should give you or owes you perhaps. Among other things it determines what you need from other people you come across in life.
Moon's role is to be a protector of a person of sorts, maybe it is just that the Cancer Moon that I have. Moon does rule Cancer, so perhaps it is the best placement that will never let you forget about your own interests and needs in every event in life. That also amplifies your needs and expectations from the world around you. The world is not always willing to deliver.
Degrees and Finer Grades
While Sun alone has only 12 possible placements for example, Moon also has 12 and can be in any sign relative the Sun. Together just these 2 planets lead to 144 possible variations of personality.
This system allows astrologers to divide and categorize all these infinite variations of human personality by dividing them into small bits that person can understand.
There is also a further refinement by dividing each sign into three equal parts, called decans or several even smaller parts, called terms, for example Chaldean or Egyptian terms. However, these should be considered as subdivisions of the same overall nature.
Even further each sign is divided into 30 degrees, each degree divided into 60 minutes and each minute into 60 seconds.
That allows even finer grading. Each placement can be rather different based on degree of the placement.
Early and late degrees can have some characteristics of neighboring signs mixed in. In contrast middle degrees are possibly the purest representation of each sign. Stereotypes that persist about certain signs however can pay much greater attention to any degrees, even if these characterizes do not apply to vast majority of natives of the sign.
In general, one should be cautious of stereotypes as they can distort nature of each sign drastically.
Also, early degrees can characterize by a naivety and unbound optimism and faith in one's role and place in the world. They are the beginners and have reasons for optimism as their sign just replaced the previous one and have great future ahead.
In contrast late degrees can have near fatalist realization that period of your sign will eventually come to an end and next sign will take its place. Thus, they could be prone to desperate measures and last-ditch attempts.
Mercury and Venus special cases
Outer planets such as Mars, Jupiter, Saturn, Uranus, Neptune and Pluto also have the same 12 possible placements, increasing the number of variations to really large numbers.
Mercury and Venus are special cases, however. As their orbits are inside Earth orbit, they could not be too far from Sun on the sky as it is observable from the Earth. Mercury can only be either in the same sign as the Sun, one sign ahead or one signs behind. Same for Venus but it can also be two signs behind or ahead of the Sun.
Just three possible placements of Mercury relative to Sun means that only three possible variations of tactical mind and manner of speech can coexist with any given sets of ambitions and aspirations.
The Sun-Mercury combination can often form a core personality. For most, but not all people mercury will be in the same sign as Sun, given a more stereotypical native of any given Sun placement. Mercury placement in one of side signs is rarer and creates much more nuanced individual.
That also limits what aspects these planets can have with Sun, for example Mercury can only be conjunct to Sun or not conjunct. It cannot form sextile, trine or square with Sun, even though it can do it with other planets. Mercury conjunct Sun often means person is very outspoken about themselves and their values and pretty much always say what they think. The further Mercury is away from Sun the more native can be flexible and impartial in their speech.
How Aspects Work
There are also aspects that planets make to each other. Good aspects such as Trine or Sextile allows planets work together. While bad ones such as square and to lesser extend opposition obstruct the functioning.
Not all combination of traits does work well together. Some traits work in synergy with each other. For example, if one has Leo Sun and loves attention, then having traits that can generate attention can help fulfilling this aspiration, for example Jupiter in Gemini will allow someone with Leo Sun to have a lot of attention by talking non-stop about all sorts of things.
In contrast Jupiter in secretive and cautious Scorpio will prevent someone with the same attention seeking Sun in Leo person from getting much attention. Thus, you can say that this combination produces a conflict between interests of Sun and Saturn.
Gemini Jupiter will sextile Leo Sun, but Scorpio Jupiter will square Leo Sun instead.
The same signs always make the same aspects to certain signs around them.
Each sign always makes trines to signs of their own element. Air signs will always trine other air sings. Earth signs will always trine earth signs and so one. Element denotes the same basic nature of people in question. Thus, it allows people of the same element to understand each other much easier than those of other elements.
Square always goes to signs of the same modality instead. Same modality but different element produces conflict as such people not only have conflicting views on reality but also constantly get in each other's way because of their common modality.
Sextile goes to a different element that is of the same gender as your element. Air sextiles Fire, Fire sextiles Air. Earth sextiles Water and Water sextiles Earth. These pairs are not alike but share some common ground that allows them to work together.
Aspects can be stronger or weaker depends on the degrees of each planets involved.
There is also dignities and debilitations for planets.
Each planet has two signs that it rules. Ruling means that this sign is the planets most natural placement, and it works much stronger than in any other sign. That is effects of planets are more pronounced that elsewhere. It does not mean the planet rules over and overrides other planets.
The opposite of Rulership is called Detriment. When planet is in detriment, it has hard time functioning properly and this aspect of personality is somewhat reduced compared to others.
There is also another dignity called Exaltation. Exaltation means that planet is more prominent and has more visible role compared to other signs.
Opposite of Exaltation is called Fall, planet in Fall has less outward visible role compared other placement, but that does not mean it has hard time functioning.
Detriments for planets located in the signs immediately opposite of the signs they rule, just as Falls are located immediately opposite to signs of their Exaltation.
Opposites
The opposition aspect in general creates the opposing pairs that are two farthest extremes of the same common nature. There are 6 such pairs. Each of these signs act as if they try to compensate for the shortcomings of the sign they oppose.
It is different from the Square aspect where difference in values and worldview makes planets block each other off.
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