InvestorQ : what is simple pendulum ?
Yuvraj kumar singh made post

what is simple pendulum ?

Answer
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divya Sing answered.
1 year ago


The pendulum theory means that stock value swings downward after a period of overvaluation, the stock does not stop at fair value. It continues dropping until it touches the low value. This theory helps to predict the market in a handy way.

Pendulum gives an idea about how likely the stock prices behave. However, as we all know it always would be a waste if you as an investor try to predict the market, or timing the market. Thus, the pendulum concept plays a short term role in successful investing.

If you are an experienced investor or successful investor, you may know that in reality the stock market never swings so high nor does it drops.

For instance - DHFL, Jet Airways in recent days.