An option is the right, not the obligation, to purchase or sell an underlying security at a stated price during a specific period of time. The most important determinant of an options price is the potential gain or loss and the probability of the occurrence given the time remaining to expiry. Option strategies can be designed to lock in a maximum loss and gain and allow for risk reduction while improving the leverage available to the invested capital. 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 critical day is known in advance allowing our members to prepare for strategies and to watch for price confirmation that a price reversal is underway or likely to materialize.