The Investment Clock Orbital Graph

The Investment Clock Orbital Graph is an advanced visualization tool designed to help traders and investors track economic cycles using a dynamic scatter plot of GDP growth vs. CPI inflation rates.

This indicator is a fusion of two powerful TradingView indicators:

1. LuxAlgo’s Relative Strength Scatter Plot – A robust scatter plot for tracking relative strength.
   
2. The Investment Clock Indicator – A cycle-based approach to market rotation. This indicator contains more information regarding The Investment Clock.
   

By combining these approaches, the Investment Clock Orbital Graph enables traders to visualize economic momentum and inflationary trends in a unique, orbital-style scatter plot.


Key Features & Improvements

• Orbital Graph Representation – Displays GDP growth and CPI inflation as a dynamic, evolving scatter plot, showing how the economy moves through different phases.
  
• Quadrant-Based Market Regimes – Identifies four key economic phases:
  1)🔥 Overheating (High Growth, High Inflation)
  2)📉 Stagflation (Low Growth, High Inflation)
  3)🤒 Recovery (High Growth, Low Inflation)
  4)🎈 Reflation (Low Growth, Low Inflation)
  
• Data-Driven Analysis – Utilizes FRED (Federal Reserve Economic Data) for accurate real-world GDP & CPI data.
  
• Trailing Path of Economic Evolution – Tracks historical economic cycles over time to show momentum and cyclical movements.
  
• Customizable Parameters – Set sustainable GDP growth and inflation thresholds, adjust trail length, and fine-tune scatter plot resolution.
  
• Auto-Labeled Quadrants & Revised Accurate Market Guidance – Each quadrant includes newly updated tooltips and annotations (like ETF suggestions) to help traders make informed decisions.
  
• Live Macro Forecasting Tool – Helps traders anticipate future market conditions, rate hikes/cuts, and sector rotations.
  

How to Use for Trading Decisions

The Investment Clock Orbital Graph helps traders and macro investors by identifying market phases and providing insights into asset class performance during different economic conditions.

📌 Step 1: Identify the Current Quadrant

• Locate the most recent point on the orbital graph to see if the economy is in Overheating, Stagflation, Recovery, or Reflation.
  

📌 Step 2: Forecast Market Trends

• The trajectory of the points can predict upcoming economic shifts:
  
• Overheating → Stagflation ➡️ Expect economic slowdowns, bearish stock markets.
  
• Stagflation → Reflation ➡️ Interest rate cuts likely, bonds and defensive stocks perform well.
  
• Reflation → Recovery ➡️ Risk-on rally, technology and cyclicals perform best.
  
• Recovery → Overheating ➡️ Commodities surge, inflation rises, and central banks intervene.
  

📌 Step 3: Align Trading & Investing Strategies

• 🔥 Overheating – Favor commodities & energy (Oil, Industrial Stocks, Materials).
  
• 📉 Stagflation – Favor defensive assets (Cash, Utilities, Healthcare).
  
• 🤒 Recovery – Favor growth stocks (Technology, Consumer Discretionary).
  
• 🎈 Reflation – Favor bonds, value stocks, and financials.
  

📌 Step 4: Monitor Trends Over Time

• The indicator visualizes economic movement over multiple months, allowing traders to confirm long-term trends vs. short-term noise.
  

The Investment Clock Orbital Graph is an essential macro trading tool, providing a real-time visualization of economic conditions. By tracking GDP growth vs. CPI inflation, traders and investors can align their portfolios with major macroeconomic shifts, predict sector rotations, and anticipate central bank policy changes.