Cycles in Motion

Published: February 10, 2012

"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."

Math is the language of our universe. Galileo was quoted as saying "nature's great book is written in mathematical language". In any human endeavor or trading activity, the math is always there, sometimes unseen, but always relevant.

Cyclical math in the market reveals the motion of emotion by traders and is demonstrated by Market Pendulum’s SRA Cycle indicator. This metric is indeed the “pendulum” in Market Pendulum.

Trends and Cycles

Within any trend, as defined by the TDI or GC, there are cycles and these are revealed by the Pendulum SRA Cycle indicator.

The SRA was first created accidentally many years ago by Trader Garrett while investigating the deficiencies of traditional momentum indicators. The period value used for the Pendulum SRA is a Prime Number. These are numbers that can be divided evenly only by 1 or by itself. The number 12, for example, cannot be a prime number because it can be divided evenly by 3 or 4, as well as by 1 and 12. The period value is also found as a member of the Fibonacci growth sequence numbers found throughout nature.

Profit from the SRA Cycle

As noted in our recent article here, one of the reasons for sales of positions in the week ending 2/4/12, was the Pendulum SRA at +100 in the daily time frame.

Typically, any trend change is generally preceded by a SRA cycle reaching either zero or +100. The XAU daily chart below shows the Pendulum SRA has now declined to +6 so the exit with profits was timely. Regrettably, a question mark now exists on the daily chart if the TDI trend will continue.

XAU Daily SRA Cycle Indicator

In Conclusion

Most readers ignore the Pendulum SRA Cycle indicator. However, it is a central feature of Market Pendulum revealing the cycle within a trend and demonstrating the trading motion of emotion in a pendulum format.

On a Trend and Cycle basis, it warrants a review in your due diligence process. We do, however, have to give credit to Trader Dan Norcini who in January 2011 was one of the few to have noted its importance and understood its value. Make sure you do too.

The Pendulum SRA is included on many charts on this website. You can read more about the Pendulum SRA Cycle indicator here under “In Sync with Cycles.”

Trader Garrett 2/10/12

Article Title	Source	Last Comment Date
In Sync With Cycles 0 comments	Market Pendulum	July 05, 2011
A Conflict of Cycles 0 comments	Market Pendulum	March 21, 2011
An look at the stock market cycles 0 comments	Clif Droke	September 23, 2010
Cycles… 0 comments	Hard Rock Analyst	October 22, 2009
Stock Market Cycles, Part 4: Primary Cycles 0 comments	John Lounsbury	January 20, 2009

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Cycles in Motion

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