Phase Layer

The Phase Layer reveals how the market is moving within its structure. While the Trend Layer shows direction, the Phase Layer shows the quality of that movement.

It tells you whether the market is:

• expanding

• contracting

• consolidating

• transitioning

Understanding the phase helps you avoid difficult environments and focus on moments where behaviour is clean and organised.

Expansion Phase

Expansion is when the market moves with clarity and consistency.

Characteristics:

• smooth price flow

• stable volatility

• directional momentum

• coherent swings

• clean structural development

Expansion phases typically produce:

• clearer opportunities

• better alignment across layers

• fewer false impulses

Pulse Mini becomes more expressive in expansion.

Contraction Phase

Contraction is where the market compresses and loses structural quality.

Characteristics:

• tight ranges

• inconsistent swings

• volatility flattening

• stalled momentum

• micro-noise dominance

During contraction:

• signals decrease

• alignment is rare

• instability increases

• better to wait than to act

Contraction is where traders often force trades — Pulse Mini avoids these traps.

Transition Phase

Transition occurs when the market shifts from expansion to contraction or vice versa.

Characteristics:

• volatility shifts abruptly

• timing becomes unstable

• trend signals hesitate

• structure breaks and reforms quickly

Transitions are inherently unstable.

Pulse Mini treats them conservatively because:

• behaviour is inconsistent

• direction is unclear

• momentum fragments

• timing becomes unreliable

Transitions require patience, not action.

Why Phase Matters

Phase determines:

• the strength of the environment

• the likelihood of clean timing

• the reliability of trend development

• whether structure is forming or breaking

Without understanding the phase, traders operate blind — entering during the worst possible conditions.

Pulse Mini makes phase behaviour visible and readable.

How Traders Use the Phase Layer

Traders use phase to:

• avoid compression and mid-phase instability

• favour clean expansions

• detect early signs of regime change

• judge the quality of the current environment

• understand when structure is at risk

Phase answers the question: “Is the market moving cleanly or not?”

Summary

The Phase Layer is the structural quality filter of the Pulse Method.

• Expansion → supportive

• Contraction → unstable

• Transition → caution

Trend gives direction. Phase reveals quality. Both must be read together for a complete structural picture.