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When a reversal is elected by a close greater than 1.0% away from the actual number, the market will retrace to the reversal point to that price level. The greater the percentage move away from the reversal, the greater the time period to retest.
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A row in the array that represents a summation of all the array models to help indicate important dates ahead.
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One of four core Socrates Platform models. Arrays is collection of time-based models presented in a graphical overview to help identify potential highs, lows, and important changes in trend and volatility for a given time level.
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A reversal that is generated from a high. If the market should close below the reversal point, then the uptrend reverses into a bearish or declining trend. Bearish reversals can only be elected if the market closes below the reversal.
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Breaklines are the key to understanding the angle of a market. Charting parallels of a breakline will reveal how an angle will stay within a market for the long-term.
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A breakout refers to a security's price movement through a historical resistance level. A breakout typically precedes heavy trading volume and increased volatility.
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Bullish reversals are generated from a low. If the market should close above the reversal point, then the downtrend will reverse into a bullish or increasing trend. A bullish reversal can only be elected if the market closes above the reversal.
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A form of analysis developed by economist Martin Armstrong in which international capital flows are monitored and studied between nations to provide a basis for forecasting the effects upon domestic markets within a given economy. Likewise, internally, capital will flow between sectors, stock markets, commodities, bonds, and real estate creating booms and busts in one sector at a time.
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Channels show the direction of the trend in motion. Channel maps are created by drawing a breakline around a high or a low. A parallel is then drawn from that particular high or low to define the channel.
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A movement in price opposite to the prevailing trend that exceeds 3 units of time and is a separate cycle in and of itself.
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A sudden and significant decline in the value of a market.
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Taken from the Greek word “kyklos” meaning circle or returning to the point of origin. A rhythm or frequency of repetitive nature as in weather or in regular oscillations from peak to trough in a time series.
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Indicates the strength of time-related trends. This indicator tends to pick highs and lows in extremely volatile moves.
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Numerous cyclical waves combine and produce an abnormally large wave that causes the amplitude of the individual waves to blend together, thereby producing the abnormally large event.
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Indicates the strength of time-related trends. This indicator tends to pick highs and lows in extremely volatile moves.
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A row in the array that notes when the market may be beginning to make a decisive move up or down.
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Double reversal points are generated twice on the same high or low. These usually occur a few times a year on the daily level, and once every two to three years on the weekly level.
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The targeted move does not need to be an actual high or low. During periods of high volatility, it is likely that the turning point and directional change will converge in the same time period. This normally occurs when a market is making a spike high or low.
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A standard technical analysis method of connecting the highest point on a chart to a subsequent reaction high. The resulting trendline is normally interpreted to define the overall trend of the market. A downtrend is said to continue in effect as long as current price activity remains below this downtrend line.
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ECM. One of four core Socrates Platform models. This is the base model for comprehending the global economy that focuses on the flow and concentration of capital around the world as a means to identify shifts in confidence that may lead to major economic events.
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ECM. One of four core Socrates Platform models. This is the base model for comprehending the global economy that focuses on the flow and concentration of capital around the world as a means to identify shifts in confidence that may lead to major economic events.
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If a market closes above a bullish reversal point or below a bearish reversal point, it is considered "elected" and will subsequently cease to exist.
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A row in the array that represents a transverse wave that studies the patterns of a market's turning points.
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The Energy model reflects the amount of excess energy within a market.
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A type of technical indicator typically formed by two moving averages that define upper and lower price range levels. An envelope is a technical indicator used by investors and traders to help identify extreme overbought and oversold conditions in a market. The envelopes, which typically appear overlaid on a price chart, are also useful in identifying trading ranges for a particular trading instrument.
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An isolated concept that focuses only on the domestic perspective. This theory is used to justify government intervention to alter domestic trends that may be set in motion externally.
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Five false breakouts in a bear market followed by the sixth, which provides a high probability of a major change in trend breakout. The final breakout confirms when the current rally is exceeding the high of the previous false breakout.
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A reversal gap in the void between two reversal points. Whenever large gaps form between reversal points, sharp swings become possible as the market moves from one side of the gap to the other, leading to a higher degree of panic. When reversal points are evenly dispersed, there are a greater number of support and resistance levels to penetrate. This requires more energy within the system to create a panic situation. But when reversals are clustered together in particular areas, leaving gaps between them, then price movement can become much more abrupt.
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GMW. One of four core Socrates Platform models. This pattern recognition model provides an objective computer analysis of all covered markets based on technical price movement, to provide a visual of what is unfolding on a global basis.
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GMW. One of four core Socrates Platform models. This pattern recognition model provides an objective computer analysis of all covered markets based on technical price movement, to provide a visual of what is unfolding on a global basis.
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Immediate reversals are generated from a very short-term (immediate) trend.
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The three possible indications are negative (below), neutral (within), and positive (above). The reason why we want to gain insight on the system is so if one were to use this in addition to other tools, entering or exiting strategies within markets can yield desirable results when protective stops are put into action. Our Indicating Ranges provide an invaluable tool to assess the strength (or lack of strength) in a given market on all levels of price activity and from several different perspectives. The numbers provided in our Indicating Ranges are not derived from moving averages, oscillators or stochastics, nor are they generated through technical charting. This study is based purely upon models that merge both time and price and therefore incorporate certain timing qualities that cannot be obtained through any linear form of analysis.
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A concept put forth by Adam Smith in 1776 to describe the paradox of a laissez-faire market economy. The invisible hand doctrine holds that, with each participant pursuing his or her own private objective without interference from the state, furthers the wealth of the economic society through their collective efforts. This effort forms the “invisible hand” and was the surest way to increase efficiency and wealth.
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A single time‑unit event.
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A row in the array that represents a longitudinal wave that expands and contracts over time.
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A row in the array that represents a transverse form of cyclical frequency analysis.
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Major reversals are generated from highest highs or lowest lows within a given time series.
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Minor reversals are generated from a reaction high or low that appears within a short-term trend.
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The market's ability to move quickly in either direction.
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An oscillator is a technical analysis tool. A technical analyst bands an oscillator between two extreme values and then builds a trend indicator with the results. The analyst then uses the trend indicator to discover short-term, overbought, or oversold conditions.
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A trading session that exceeds the previous high or low and thus it can be a session that exceeds both directions.
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A row in the array that represents cyclical timing of when an abrupt or dramatic move may occur within the market. A panic cycle differs from a turning point, as it reflects neither a high nor a low and is not the beginning of a change in trend.
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The high; the highest point within a time series.
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A state that explains abrupt movements in price (transition) after a buildup of energy in the market. This is not a normal bearish or bullish state; rather, it is a compressed state of time that convinces the majority within the marketplace to switch sides. This is a sudden exponential move that marks a departure from a normal trading event to an explosive move. A phase transition is typically 52–59 weeks in length.
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ECM. One of four core Socrates Platform models. This is the base model for comprehending the global economy that focuses on the flow and concentration of capital around the world as a means to identify shifts in confidence that may lead to major economic events.
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A technical analysis indicator used to determine the overall trend of the market during different time frames. The pivot point itself is simply the average of the high, low and closing prices from the previous trading day.
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This move creates a completely new trading level that is sustained. There is no return to the former trading range. Such events are profound and often are interlinked with the Economic Confidence Model.
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An interface designed to bring together all the key information available from the proprietary models and artificial intelligence on the Socrates Platform. Available only to Pro members via a Premium market subscription or Premium snapshot report.
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Quadruple reversals are generated when three reversals are elected on the same high or low. This historic event has only occurred once during the 1929 stock market crash.
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A three-or-more time-unit event that does not penetrate the previous high or low.
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A reversal gap in the void between two reversal points. Whenever large gaps form between reversal points, sharp swings become possible as the market moves from one side of the gap to the other, leading to a higher degree of panic. When reversal points are evenly dispersed, there are a greater number of support and resistance levels to penetrate. This requires more energy within the system to create a panic situation. But when reversals are clustered together in particular areas, leaving gaps between them, then price movement can become much more abrupt.
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Reversal points are generated each time a market produces a new isolated high or low on an intraday basis.
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One of four Socrates Platform core models. The Reversal System is a computer model based on the theory that specific pressure points (the reversal points) exist within price movement.
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One of four Socrates Platform core models. The Reversal System is a computer model based on the theory that specific pressure points (the reversal points) exist within price movement.
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A fake move down, taking out the previous low, followed by a blow-off parabolic move up, taking out the previous high.
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A quick thrust that may be three actual time units within four or five time units and creates a v-shaped event followed by a quick reversal in price.
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A cascading collapse where people try to pick the bottom but rapidly resell once they begin to lose money.
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The superposition principle states that, for all linear systems, the net response caused by two or more stimuli is the sum of the responses that would have been caused by each stimulus individually. This principle applies to cyclical behavior within a single market which we can qualify as simply a linear system without interfacing it with all other markets that introduce a nonlinear system of super-complexity.
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Refers to levels of market support or resistance as represented by the Socrates Platform.
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Refers to levels of market support or resistance as represented by the Socrates Platform.
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A point in time at which a market direction change occurs or may occur. Also called a turning point.
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Refers to levels of market support or resistance as determined through chart analysis.
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Refers to levels of market support or resistance as determined through chart analysis.
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A brief trend that is greater than three time units.
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One of the five key viewpoints of time into which analysis is divided: daily, weekly, monthly, quarterly, and yearly. Also called a time level.
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One of the five key viewpoints of time into which analysis is divided: daily, weekly, monthly, quarterly, and yearly. Also called a time frame.
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The time level being considered: days, weeks, months, quarters, or years.
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A row in the array that represents a union of time and direction that determines when a high or low is likely to occur.
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Triple reversals are generated when three reversals are elected on the same high or low. This very rare event has only occurred twice in history.
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The bottom; valley; the lowest point within a time series.
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A point in time at which a market direction change occurs or may occur. Also called a target date.
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Occurs when the market breaks and quickly closes above. This often signals a low is in place.
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A market that encompasses a group of companies and customers that are all interconnected around a specific function. This type of market appears as a phase transition or plateau move, meaning that we are dealing with a phase transition or plateau move that is distinguished. The former is typically not sustained and is followed by a waterfall collapse. The latter creates a whole new trading dimension that is permanent.
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One based upon a self-sufficient group of estates that produce little if any excess to be sold in a market; a feudal enclave.
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A row in the array that indicates when a change in the current volatility trend will take place. Unlike timing, volatility is only concerned with percentage movement rather than the direction or whether it is a high or low. The targets reflect turning points, but in volatility terms.
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An event that generally begins with a curve of approximately 45 degrees, rapidly turning downward to a near 180-degree drop at the end. When charted, the event looks like a waterfall.
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A single oscillation measured from one peak to the next or from one trough to the next.