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How to read the market with PulseAnchor
This page explains the system behind the dashboard. Read it once, and everything you see in the product will make sense. Takes about 5 minutes.
Five things the dashboard tells you
State — What kind of market is this?
The system classifies market conditions using momentum readings across multiple timeframes. Like weather, markets cycle through seasons — bull, bear, transition. The dashboard shows you which season you're in right now, not what season you wish it were.
State answers: "Should I be aggressive, cautious, or patient?"
Direction — Is it getting better or worse?
State tells you where you are. Direction tells you where you're going. The system measures whether the current state is strengthening, weakening, or steady by comparing momentum vectors across the 7, 3, and 1-month windows.
Direction answers: "Is the wind at my back or in my face?"
Participation — How broad is the move?
A market that's rising on the back of five mega-cap stocks looks very different from one where hundreds of stocks are participating. Breadth ratios reveal whether the move is broadly supported or dangerously narrow.
Participation answers: "Is this a real move or a disguise?"
Structure — What's happening beneath the index?
The index is an average — it hides what's happening inside. Grade distribution shows how many stocks are in each cyclical phase (A through E), revealing internal market health that the headline number can't.
Structure answers: "What's the index hiding from me?"
Transition — What's about to change?
Markets don't flip overnight. Stocks rotate through grades in predictable sequences. Grade transitions detect these rotations early — showing where the next move is building before it shows up in headlines.
Transition answers: "What should I be watching next?"
The three momentum layers
The Pulse7 engine measures momentum at three time horizons. Together they reveal whether the market is trending, transitioning, or conflicted.
Market Pulse7 — Fast Pulse
The most responsive of the three layers, first to register collective directional shifts across the market. When the Fast Pulse is positive, the market is reacting bullish on the surface. A wide gap between Market Pulse7 and Market Pulse3 shows that the Fast Pulse has stretched away from its anchor.
Market Pulse3 — Anchor Pulse
The steadier anchor beneath the Fast Pulse. Market Pulse3’s direction provides the system’s read of the market trend. Across historical observations, large separations between the two have often narrowed later; that relationship is context, not a timing rule. Divergence can mark a potential transition, but does not predict one by itself.
Market Pulse1 — Baseline Pulse
The slow background level for the market. Market Pulse1 versus Market Pulse3 reads as tailwind or headwind: when they move together the trend has wind at its back; when they diverge, the trend is fighting the background even if the Fast Pulse looks active.
The grade cycle
Every stock is assigned a grade from A to E based on its momentum profile. Stocks rotate through these phases in a cyclical pattern. Understanding where a stock sits in the cycle — and where the market as a whole sits — is fundamental to reading the dashboard.
Accelerating
Momentum rising and strong. Price above key moving averages with expanding participation.
Building
Positive momentum developing. Emerging from lower phases with improving trend alignment.
Correcting
Momentum stalling or pulling back from strength. Potential rotation point.
Declining
Persistent weakness. Below key averages with negative momentum across timeframes.
Exhausted
Deep weakness or capitulation. Extended below averages — potential base-building zone.
Typical cycle rotation
Stocks tend to cycle: weakness → recovery → strength → distribution → weakness
Ready to see it in action?
Open the dashboard and apply what you just learned. The free tier gives you real-time market readings for US and Hong Kong.
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