Markets cycle. They accumulate, mark up, climax, distribute, and decline. This pattern repeats on every timeframe, in every market, because it reflects how capital moves through the system.
Pentarch was built to make this cycle visible. Not to predict the future - no tool can do that - but to show you where you are in the structure so you can make informed decisions about where you might be going.
Here's how to actually use it.
Understanding the Five Phases
Pentarch identifies five distinct cycle phases, each with specific characteristics:
TD (Touchdown) - Accumulation
The cycle low. Smart money is quietly buying while price moves sideways or makes final lows. Sentiment is pessimistic. Volume often shows absorption - selling pressure being absorbed by informed buyers.
Trading implication: Look for long entries. Risk is lowest here because stops can be placed below the cycle low with clear invalidation.
IGN (Ignition) - Markup
The rally phase. Accumulation is complete, and price begins trending higher. This is the "easy money" phase where trends run. Volume typically confirms with increasing participation.
Trading implication: Hold longs, add on pullbacks. The trend is your friend here. Avoid fighting the direction.
CAP (Climax) - Exhaustion
The blow-off top. Buying becomes frantic. Volume spikes. Everyone is bullish. This is where the last buyers enter - right before the turn.
Trading implication: Take profits on longs. Prepare for distribution. This is not the place to initiate new positions.
WRN (Warning) - Distribution
Smart money is selling into strength. Price may make marginal new highs or hold near highs while ownership transfers from informed to uninformed hands. Volume often shows distribution patterns.
Trading implication: Exit remaining longs. Watch for short setups. The trend is aging.
BDN (Breakdown) - Decline
Distribution is complete. Price falls as selling overwhelms buying. This can be sharp and fast - declines are often more violent than rallies.
Trading implication: Short opportunities or stay flat. Wait for the cycle to complete back into TD.
Reading Pentarch on Your Chart
When you add Pentarch to a chart, you'll see:
Phase labels: The current cycle phase displayed clearly. No guessing required - the indicator tells you where you are.
Phase transitions: When the cycle moves from one phase to another, you'll see the transition. These are key decision points.
Multi-layer detection: Pentarch analyzes 4 layers simultaneously, providing confirmation when multiple layers agree on the phase.
The display is intentionally simple. Complex indicators with dozens of lines create confusion. Pentarch gives you the essential information: what phase is the market in?
Entry Strategies by Phase
Entering in TD (Accumulation)
This is the highest-conviction long entry zone. The market has declined, smart money is accumulating, and the risk/reward favors buying.
Entry triggers to look for:
- Pentarch showing TD phase
- Volume Oracle confirming Accumulation regime (green)
- Price at or near a Janus Atlas support level
- OmniDeck confluence score of 7+
- Harmonic Oscillator showing oversold with bullish divergence
Stop placement: Below the cycle low or below the accumulation range. If this level breaks, the TD phase has failed.
Entering in IGN (Markup)
You missed the bottom? That's fine. IGN pullbacks offer excellent entries.
Entry triggers:
- Pentarch showing IGN phase
- Price pulling back to support (previous resistance, moving average, Janus Atlas level)
- Volume Oracle still showing bullish regime
- Pullback on declining volume (healthy consolidation, not distribution)
Stop placement: Below the pullback low. If the pullback fails, the IGN phase may be ending.
Exiting in CAP (Climax)
CAP is not an entry zone - it's an exit zone. When Pentarch shows CAP:
- Take profits on existing longs
- Tighten stops aggressively
- Avoid new long positions
- Watch for WRN transition
Short Entries in WRN/BDN
For traders who short, WRN and BDN phases provide opportunities:
- WRN: Look for failed breakouts, lower highs, volume divergence
- BDN: Short rallies back into resistance with stops above the distribution high
Note: Shorting requires more precision than longing. Markets fall faster but rally attempts can be sharp. Use the suite's other indicators for confirmation.
Combining Pentarch with the Suite
Pentarch provides the structural context. The other indicators add precision.
Pentarch + Volume Oracle
Cycle phase + volume regime should align:
- TD + Accumulation (green) = High conviction long setup
- WRN + Distribution (red) = High conviction exit/short setup
- IGN + Weakening (gold) = The rally may be losing steam
When they diverge, wait for clarity. Mixed signals mean uncertain direction.
Pentarch + Janus Atlas
Cycle phase + key level = precise entry:
- TD phase at POC (Point of Control) = Strong support confluence
- WRN phase at VAH (Value Area High) = Strong resistance confluence
- Phase transitions at pivot levels often mark significant turns
Pentarch + OmniDeck
Cycle phase + confluence score = confidence level:
- TD phase with OmniDeck score 8+ = Very high conviction entry
- TD phase with OmniDeck score 4 = Phase is right, but other factors don't confirm - wait
Pentarch + Augury Grid
Use Augury Grid to find symbols showing favorable Pentarch phases:
- Scan your watchlist for symbols in TD or early IGN
- Avoid symbols deep in CAP or WRN
- Focus your analysis on the best phase setups
Multi-Timeframe Application
Cycles exist on every timeframe. The key is alignment:
Higher timeframe sets direction:
- Weekly in IGN = Look for daily TD/IGN entries (buying pullbacks in an uptrend)
- Weekly in BDN = Daily IGN rallies are counter-trend and risky
Lower timeframe provides entry:
- Daily in TD, 4-hour showing spring pattern = Entry trigger
- Daily in IGN, 4-hour pullback to support = Add to position
Best setups:
- Multiple timeframes in same or consecutive phases
- Higher timeframe in IGN, lower timeframe in TD = High probability
- Avoid trades where timeframes conflict significantly
Managing Positions Through the Cycle
How to manage a trade from entry to exit:
Position entered in TD:
- Initial stop below cycle low
- As price moves into IGN, trail stop to below TD low (now confirmed support)
- In IGN, add on pullbacks if desired
- As CAP approaches, take partial profits
- When WRN appears, exit remaining position or trail very tight
Position entered in IGN (pullback):
- Initial stop below pullback low
- Trail as new higher lows form
- Exit at CAP transition or at predetermined targets
The cycle provides a roadmap. You know approximately where you are in the structure and can plan accordingly.
Common Mistakes to Avoid
Buying in CAP or WRN: These are exit zones, not entry zones. The indicator is telling you the rally is mature. Listen to it.
Shorting in TD: Trying to catch the last down move when accumulation is beginning. The risk/reward is poor and you're fighting smart money.
Ignoring higher timeframes: A daily TD in a weekly BDN is a counter-trend setup. It can work, but the odds are lower.
Expecting perfection: Not every TD leads to a profitable rally. Not every CAP leads to a crash. Cycles fail sometimes. That's why we use stops.
Using Pentarch alone: The cycle phase is important context, but it's not the only factor. Volume confirmation, key levels, and confluence all matter. Use the full suite.
Practice Before You Trade
The best way to learn Pentarch is to watch it in real-time:
- Add it to charts you follow
- Observe how phases develop and transition
- Note how price behaves in each phase
- Watch what happens at phase transitions
- Paper trade the setups before risking real money
Cycle analysis isn't complex, but it does require calibration. Give yourself time to see how the indicator behaves on your preferred markets and timeframes.
Why This Approach Works
Cycle-based trading isn't magic. It works because it aligns with market structure:
You're trading with institutional flow. Accumulation (TD) is where smart money buys. Distribution (WRN/CAP) is where they sell. By recognizing phases, you're positioning alongside the capital that moves markets.
You have clear invalidation. When a TD phase fails, you know it - price breaks the cycle low. No ambiguity. Clear stops. Defined risk.
You avoid the worst entries. Most retail traders buy in CAP (the top) and sell in TD (the bottom). Cycle awareness inverts this. You enter where others exit and exit where others enter.
Context improves everything else. RSI "oversold" in TD is different from RSI "oversold" in BDN. Volume spike in IGN is different from volume spike in CAP. Cycle phase provides the context that transforms generic signals into specific, actionable information.
Get Started
Pentarch is included in the Signal Pilot trial along with all other indicators. You can add it to any TradingView chart and start observing immediately.
Most traders find that after a week of watching, the cycle phases become intuitive. What seemed like random price action starts showing structure. Entries and exits gain context.
That's the goal: not prediction, but understanding. Know where you are, and the decisions become clearer.
Start today. Add Pentarch to your charts during your free trial. Watch one full cycle develop. See the phases transition. Notice how price behaves at each stage. One week of observation changes how you see markets - permanently.
Ready to see market structure clearly?
Start your free trial and add Pentarch to your charts today. Watch the cycle phases develop in real-time. Combine with Volume Oracle, Janus Atlas, and OmniDeck for full context.
No credit card. No commitment. One week to see if cycle-based trading fits your approach. Most traders know within days.
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