The science of trading market momentum for stocks, options, futures and bonds. Our critical day analysis is all about trend reversals. The graph below is one of several chosen at random located on the site. It depicts a historical period of price and critical days are shown on the graph 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 leading into the critical day reversed coming away from the critical day. The short trend for the purposes of our research is the smallest segment of price directly before and after a critical day. The purpose of putting the graphs on site is to give indication of the possible uses and potential limitations of our research for application to stocks. Our research is based on the broader aspects of supply and demand in the market place, and generally if the major U.S. Indices changes direction, some sectors must be moving in the same direction as the Indices. When looking at sectors it is important to remember that industry specific news can result in price behavior that is quite different from the rest of the markets.