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This is far too big a question to deal with here, but there are several ideas about how or why Astrology works, as well as one or two about why it's nonsense or why people believe in it.

The medieval idea of "influence" (flowing in -- of power or forces) is not nowadays so popular and most prevalent ideas seem to be based on symbolic equivalence. Some people (see Robert Schmidt) hold that astrology, which developed in Hellenistic Egypt, was originally viewed as the language spoken by the great being of the universe, which we learn to understand, through a particular grammar of stars and signs etc. Others see it as a form of symbolic clock in which the markers of the heavens indicate the nature of the time and place.

And there are plenty of other ideas out there too.

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Q: What is the theory of astrology?
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