Martin Armstrong discovered capital flow analysis in the 1980s after observing how capital was rushing worldwide, driving markets up and down.  The flow of capital is the key to understanding how the model identifies bull market trends (rising) and bear market trends (declining).  The market models aim to identify the booms and busts in the global economy and investments.

Human emotion drives the movement of everything, whether it runs into something (boom) or flees (bust).  Capital herds like Zebras at a watering hole and panics like a herd of Zebras confronted by a Lion.  Investors are concerned with the cycles of capital concentration and dispersion.  Socrates's purpose is to locate where capital concentration is heading.  When Capital Concentrates, Asset Prices Rise (GREED).  When Capital Flees, Asset Prices Crash (FEAR).  

Global capital flows have always created significant market uptrends.  Likewise, most losses have arisen from decisions that have failed to account for a reversal in the capital flows.