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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.
Chord7 — Trigger
The most responsive of the three layers, first to register collective directional shifts across the market. When Chord7 is positive, the market is reacting bullish on the surface. When Chord7 stretches far from Chord3, the system tends to pull it back.
Chord3 — Anchor
The steadier chord beneath Chord7. The direction Chord3 is moving in is the read of the market trend. Chord7 mean-reverts toward Chord3 when it stretches too far. Divergence between Chord7 and Chord3 signals potential transitions.
Chord1 — Baseline
The slow background level for the market. Chord1 vs Chord3 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 Chord7 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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