Using the critical day analysis with candlestick interpretation can help provide confirming evidence of trend reversal very early in the movement. Critical days are given to members three days before the critical day arrives. Advance warning of a potential trend reversal with our critical day research combined with an understanding of other market indications of changing supply and demand can open up to a world of trading opportunity. 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. All formations, patterns, indicators and technical tools fail at various times and so should only be used to build a body of evidence in forming a trading decision rather than being solely relied upon. There are a number of valuable studies that lead to intuitive understandings about price and volume but a strong compliment to technical analysis is an understanding of the trends and changes in the fundamentals and economic activity that ultimately lead valuation levels in the markets. To the right technical studies are examined in more detail. Click on any of the terms to take a closer look.