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Our critical day analysis is all about trend reversals. We tell you when there is a high potential for a reversal of the short trend and we've been doing it since 1994 with an 80%* accuracy. |
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Futures A futures contract has highly standardized and closely specified terms which calls for the exchange of some good at a future date for cash, with payment to occur at that future date. The purchaser agrees to receive delivery of the good at that future date. The seller promises to deliver the good and receive payment, the price of which is set at the initial time of contract. Buyers of a future contract are said to have a long position while sellers have a short position. The number of outstanding futures contracts obligated for delivery is called the open interest. For futures traders, the critical day can be of enormous benefit in navigating the market. Our critical days have a very high success rate (better than 80%* historically) for the S&P500 Index in identifying reversal points for the short segment of price trend. 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.
A critical day is an expectation of a reversal of the short trend. Effectively, the short trend leading into a critical day is expected to reverse coming away from the critical day. The critical day becomes the peaks or troughs of the short term market when they are successful. With a success rate of better than 80%* since 1994 we have been able to provide our members with an amazing tool for helping to navigate the short term market. The period on the graph is from Nov 22/00 to Jan 12/01. Our full signals since 1994 are available on line for your convenience at Past Signals. The graph is a price plot of candlesticks. Over the price plot is a series of red lines put there to help identify the short trend of the market. The dots are critical days given to members during that period. You can see that for each critical day, the short trend leading into the critical day, reverses coming away from the critical day. The critical day can be the first day of a movement in a new direction or it can be the last day of a short trend direction. Understanding trend reversals and methods of recognizing reversals of the trend can help in determining trading strategy and timing of trading decisions. In addition the critical day applies across a wide body of stocks, sectors and Indices.
A closer view of the most recent signals. You can see the short trend immediately prior to a successful critical day, reverses coming away from the critical day. Often a failed critical day will indicate a stronger bias in the market for continuation of the trend that was in place prior to the critical day. A failed signal can therefore provide as much information and opportunity as a successful one. Take a look at tech studies to develop a sense of trend reversals and use. |
Tech Studies
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Copyright © 1999-2007 Trade10.com. All rights reserved. *based on the critical days generated from 1994 to 2000 plotted on the S&P500 Index |