Introduction to the Pendulum Project

The Pendulum Project

The Pendulum Project is not about “work in progress”. It’s all about "Projections" within the monthly time frame trend.

Making predictions is always inherently dangerous but far more reliable in longer term trends as fully described "Trend & Cycle Decoded" here.

Please review before continuing.


Pendulum Project Credentials

Many Market Pendulum forecasts, some of which are summarized in the Pendulum Trader, originated from or were influenced by the proprietary Pathfinder Price, Time & Distance (PTD) formula within the Pendulum Project since 2013.

In fact, the Pendulum Portfolio results for the recent XAU uptrend demonstrate another positive result from the Pathfinder PTD formula.

That was how it was done and with a high degree of accuracy.

What is the Pathfinder PTD Formula?

The Pathfinder PTD formula is my method for making minimum price projections (goals) within any Pendulum Project monthly time frame trend for any stock or index.

Let me illustrate how it works with a real life example we all can relate to.

If one drives to a store, a trend and goal has already been established with 3 primary elements:
  • Price (cost to get there)
  • Time to get there
  • Distance to be traveled

Along the way, there may be detours, road closures, or traffic jams but the primary trend and goal remains intact.

Here is another visual illustration that demonstrates the principle.

How far will a ball will bounce if dropped from a tall building? The height of that bounce is the minimum price objective (MPO) together with an estimated time to reach that goal.

The Pathfinder PTD formula for stocks takes that rebound calculation and determines
  • A minimum price objective it will likely achieve (MPO)      
  • An estimated time to arrive there

After MPO Achieved - What Next? 

Pathfinder PTD does not predict prices after a monthly destination has been achieved although minimum targets are frequently exceeded by a wide margin.

One has to employ other traditional/technical methods from that destination point forward including the vital Pendulum Project parameters.  Naturally, your usual customary stop loss procedures apply for safety.

An exception to this barrier is if prices have achieved a positive quarterly trend. That important time frame subject and results is covered in Bonanza Gold.

A Strategic Monthly Trend Example

The monthly trend is the most reliable time frame, particularly after a long downtrend. This kind of scenario is where the Pathfinder PTD formula really excels and where the highest probabilities reside.

The monthly is the only time frame being offered here.

I could show you hundreds of examples but would direct you to only one in the Pendulum Project under the “monthly chart” for NWBO. This was a stock a few of us followed/invested in during 2015 and demonstrates the results. 

Caution: Most will not be as precise as this example. Most exceed the MPO.

A worthwhile strategy is to buy new daily trends in those already doing well and in positive monthly trends as probabilities for profit favor this approach.

Pendulum Portfolio Projections

"It's certainly nice to have a Pendulum Portfolio that is doing well. It's quite another to know the minimum price projection for each stock."
 
We already have Pathfinder PTD projections for the 20 stocks in that portfolio (plus 19 others in sub-categories) whether or not a positive monthly trend has been achieved. 26 others in the Leadership PTD Portfolio also have projections.

These fixed projections are “already baked in the cake”, as it were, just waiting for execution when a new monthly trend begins.

In Summary

The Pathfinder PTD formula, in conjunction with a new positive Pendulum Project monthly trend change (after a long downward trend), is the most reliable method for making PTD predictions for any stock or index with a probability bordering on certainty.

At this time, the Pathfinder PTB and the new and global Leadership PTB projections can only be seen by way of this offer here

This is all part of Bonanza Gold, a world class trading system found nowhere else.

July 2016 (Updated 2018)
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Far Out - A Journey of Discovery


  • Is the road going around, over or through the mountains in the distance?
  • What will be the cost, time involved and distance to be traveled?
Price, Time & Distance

Longer term market projections always involve unknown interim variables and the inherent risks associated with them

This journey also involves a considerable amount of market price changes, time and distance to accomplish. It is also quite similar to traveling to a destination which involves the primary elements of:
  • Price (or cost) to get there
  • Time to get there
  • Distance traveled to get there

This was still more art than science but long term trends are important to all of us. Was there a better way?

The PTD Formula

More research work over several years resulted in the "Price, Time and Distance" formula (PTD) in the Pendulum Trader.

The PTD formula uses elements of the TDI along with other proprietary parameters to accomplish just that in a unique chart format. 

These "trend tracks" are not moving averages but progression price, time and distance force trends which include elements of slope and degree. The PTD formula clearly implies direction.  

For the PTD formula to work, we need to know:
  • The current price
  • The time (daily, weekly or monthly trend)
  • The likely distance to be covered (in time and price)
The multi-colored "trend tracks" then projects a longer term trend in a fashion similar to the PTD formula. Now we had more direct mathematical evidence for trading purposes that has become a part of the Pendulum Project.


The Pendulum Project

This documentation and chart evidence was first introduced by way of a 2014 introductory article which was met with a collective yawn and little interest. 

It should be noted there are two missing elements not included on the charts which have the "wow" factor. This overall trade plan is the best indication of a bull or bear market and a longer term trading system with no equal.

In future pieces, we may reveal and examine these elements in this far out journey of discovery if there is sufficient interest

Today it is nil. Some people would not know a gold mine even with flashing lights and a blinking arrow pointed at it.

Benefits

Potential benefits include:
  • Additional potential buy or sell short points when the yellow TDI line crosses through the blue line
  • Guidance on the longer term trend
  • Support and resistance areas
  • Limiting errors in TDI daily trend changes

Meanwhile, here is a daily Pendulum Project chart for GG, updated and expanded which demonstrates these benefits with multi-colored "Trend Tracks".

GG - Daily Chart Example



The Pendulum Project parameters are most effective in the weekly and monthly time frame trends. Here is a more recent weekly chart for the GG.

GG - Weekly Chart Example (with DMO)
 

 Summary 

The Pendulum Project is a world class trading model without equal and primarily used for longer term trends. 

The proprietary formulas for this project combine TDI elements with other proprietary indicators in a unique way. The trend tracks are not moving averages but progression price, time and distance force trends which include elements of slope and degree.

The PTD formula also implies direction. 

11/5/14 (Updated 2018)

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The Inspiration for the Pendulum Project

Time & Distance

The inspiration for the Pendulum Project was Galileo's pendulum time measurement device described here.

The theory of time and distance is also related indirectly to Galileo's Law of Fall. This concept deals with time and distance of falling objects, as more fully described below.
“Galileo's law deals with falling bodies. The law of parabolic fall claims that the distance traveled by a falling body is directly proportional to the square of the time it takes to fall.

For example: A stone falling for twice as long as another stone will travel four times the distance. A ball falling for three seconds will travel nine times the distance traveled by a ball falling for one second."

I added price to the consideration of this formula with the rough price-time-distance (PTD) formula discussed in the Time Frame Clock series in the Pendulum Trader.
Application
Does any of Galileo's Galileo's Law of Fall have application in the stock market? Not directly, but let’s look at a declining stock price.
A declining stock price is not a falling body or object, although at times it may feel like it to those owning it. 

For example, a stock priced at, say 30 will not normally go straight down to zero (the ground). Typically there is a down sloping trend line over a period of time created by multiple human interactions of perceived buy and sell points. 

In what may appear to be pure randomness of price change, there is order in this chaos in the form of a trend which is based on multiple variables acting upon it. We cannot know all the variables but we can see the result in the structure of a trend over time and distance.

Time and Distance Key

In my view, the first key to any ultimate upward or downward price change is the degree of slope which implies a force level and a time and distance to be covered. Time frames are a convenient method to examine the forces acting on various time frame trends. 

For example, having both a daily and weekly time frame in a downward trend exerts greater force (which implies time and distance) then just the daily time frame trend by itself. 

Upward time and distance trend dimensions have the same characteristics but "defy gravity" (due to human interaction) with strong time frame force and momentum trends rolling uphill, as it were.

In Conclusion

The time and distance theory prompted and resulted in the major Pendulum Project and its clear "trend tracks". These trend tracks are not moving averages but price, time and distance force trends.

Built on Galileo's research, the Pendulum Project demonstrates a higher form of trend behavior and a unique invention that clearly works. It is particularly useful for longer term stock trend guidance. 

Time and distance are indeed an integral part of stock price trends.

4/21/15 (Updated 2018)

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