Market Pendulum Model

The Inspiration for the Market Pendulum Model

"In 1581, Galileo, while attending services at the Cathedral of Pisa, observed a chandelier swinging back and forth. Energized by shifting air currents, the chandelier moved in a variety of arcs and amplitudes. Thus was born the concept of the pendulum which Galileo used as a time measurement device in his later experiments." 

Today, Market Pendulum measures the swings in the market, their amplitude, force and energy while recording the motion of emotion across an equilibrium point or gravity center. The concept of gravity center is a central feature of Market Pendulum and is found throughout nature. This is the force of nature that compels both human behavior and physical objects to find their equilibrium point.

Market Pendulum Trend & Cycle:

What is the Market Pendulum model?

Pendulum is a set of unique, original and world class technical metrics designed to add premiere positions to any trading portfolio when low risk entry points occur as defined by our leading indicators. Primary trends in any time frame (daily, weekly or monthly) are measured by the Trend Directional Indicator (TDI) and Gravity Center (GC). They must both confirm, to call a new trend in any time frame.

What is the Trend Directional Indicator?

Pendulum's trend directional indicator (TDI) along with its signal line (TSL) is based on a proprietary mathematical formula that uncovers a trend and then measures its amplitude, force and energy. In brief, these  formulas capture buy/sell patterns in a format that extracts a trend focus.  

The indicators can be used to track any stock, index or commodity. An example is below.

What is the Gravity Center Trend Formula?

Gravity Center is a simple formula that recognizes the intricate and delicate balance of recent highs and lows and then integrates them into today’s close based on an equilibrium point or gravity center. That point is constantly changing but is a prime determinant of the overall trend. Prices do not stray too far from this gravity center point and eventually return to it. Mathematicians would call this a "mean reversion". 

In effect, Gravity Center is a trend all by itself and a metric that finds the equilibrium point.

What is the Pendulum SRA Cycle Indicator?

The world class Pendulum SRA Cycle indicator is very highly ranked, regarded and is indeed the "Pendulum" in Market Pendulum.  

This unique time cycle tool displays short term cyclical activity and harmonics within any TDI or GC time frame trend. It is also scaled on a 0-100 parameter basis for reference purposes. 

Updated charts demonstrating the TDI and the Pendulum SRA Cycle interaction are on this website.

This provides us with outstanding determination of the cycle activity within any TDI or GC trend or time frame. 

For additional details on the Pendulum SRA Cycle Indicator, please see "In Sync with Cycles" below.

Trend and Cycle Summary

The golden pendulum formula is a belief that the herd instincts of greed and fear are prevalent, that virtually all extremes return to a natural equilibrium point or gravity center, and Trends and Cycles of these tendencies can be identified and measured.

Studies have shown that 60% of a typical stock price change can be directly attributed to the movement of the overall market. Therefore, it just makes common sense to be on the right side of a market trend. 

In summary, Pendulum's Trend and Cycle chart is one of the most powerful market displays anywhere blending the longer term trend with the short term cycle in one integrated view. These remarkable tools demonstrate the primary trend and the current cycle within that trend and time frame for a significant trading advantage. 

For specifics on the Pendulum Trading System including trading techniques, click here. 

Our Pendulum Trader website includes the complete Pendulum Trading System plus step-by-step guides, premier trading plans and winning strategies.




General information on the Market Pendulum Model 

Built on many years of research, development and a belief that precision precedes profits, Pendulum is not only uncanny and precise in its signals but uncommonly profitable in its results.

Pendulum is not a get-rich-quick system but a practical, accurate, and technical tool assisting Pendulum's founder in his decision making process. No matter how precise, it is not perfect. There will be errors. The result, outside of the occasional sideways markets where this methodology is less effective, uncovers emerging trends and clearly defined trend charts.

Most investors have three goals...when to buy, when to sell and a reasonable profit. Following Market Pendulum's charts will assist investors in their own due diligence process.

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In Sync with Cycles 

The world class Pendulum SRA Cycle indicator is a time cycle tool that provides cyclical guidance within a trend indicated by the Trend Directional (TDI) and Gravity Center (GC) indicators.  

Whether it be the daily, weekly or monthly, this time cycle tool demonstrates the current cycle and harmonics for that trend.

Important Benefits

  • Pendulum SRA reveals the cycle within the TDI/GC trend
  • Demonstrates the trading motion of emotion in a pendulum format
  • The overlaid blue SRA cycle indicator measures speed, acceleration and resistance (scaled 0-100 parameters)
  • Provides an early warning of possible trend changes in the TDI and GC indicators by reaching either zero or +100
  • Tends to pinpoint primary market high and low areas in any time frame
  • Most interestingly, precision and reliability for the SRA is more accurate in the longer time frames (e.g. weekly and monthly)

Chart Example

Within any trend, as defined by the TDI or GC, there are cycles that reveal the motion of emotion by traders. These are demonstrated by the Pendulum SRA Cycle Indicator.

XAU Daily - TDI/SRA Cycle Indicator Example


You may find more other charts on the website. They may include the Pendulum SRA Cycle indicator.

We created and have used this unique SRA cycle indicator for many years with reliable advisory results. Displays can be applied to any index but we focus on the S&P500 and the XAU for our readers.

Pendulum SRA Cycle Summary

Most readers usually ignore the Pendulum SRA Cycle indicator. However, it is a central feature of Market Pendulum that...
  • Reveals the cycle within a TDI trend 
  • Demonstrates the trading motion of emotion in a pendulum format
  • Provides helpful exit signals for us when reasonable profits have been made.
The bottom line is simply this. When the Pendulum SRA Cycle indicator goes to zero or near +100, it's an alert for us of a possible trend change. Very simple.

Conclusion

Am sure you will agree that the Pendulum SRA Cycle indicator does an outstanding job in providing cyclical guidance within a trend. On a Trend and Cycle basis, the SRA warrants a review during your due diligence process.

Please remember the Pendulum SRA Cycle indicator is an advisory technical tool only, not a complete trading platform mechanism. Your personal due diligence and consultation with your primary financial adviser is still required.

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We invite you to browse this site. Should you have further questions, don't hesitate to contact us.