Because of the broad nature of the data collection process that goes into generating a critical day, the research has application across many different stocks, sectors and indices. During times of high correlation to the bond market, critical day research can effectively identify changes in the short trend of bond prices as well. When major indices change direction, stocks that make up that index change direction, sector groups change direction, short term and long term traders make trading decisions based on the changing trend and personal circumstance, and through it all our members know in advance when to expect short term trend changes. 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. All formations, patterns, indicators and technical tools and methods of market analysis fail at various times including the critical day 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 trading decisions of any kind 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.