During times of high correlation to the bond market, critical day research can effectively identify changes in the short trend of bond prices and yields as well. A critical day is given to members in advance by two to three days allowing for preparation of strategy and a focus on confirming evidence of a change in the trend. Knowing when a movement is important is a navigational tool that can lead to great successes in the market place. The Most recent Critical Days on the graph below are shown with Blue and Red dots. The blue dots , above or below the price plot, indicate successful critical days.
Red dots indicate failures.
A successful critical day indicates that the short trend did reverse, as expected by members, going into that period. You'll notice that the short trend leading into a critical day reverses coming away from a critical day. In terms of our research, the short trend is identified as the shortest segment of price activity leading into and away from a critical day. Looking at the flow of candle bodies approaching a critical day and then moving away from a critical day can be a visual aid in identifying what we refer to as the short trend. Each are plotted with the past critical days on each graph.