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the right technical studies are examined in more detail to provide a sense
of conformational evidence for traders of the critical day. Click on
any of the terms to take a closer look at a technical discussion on that
topic. 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.
Walk
through a critical day
| The
graphs show a price plot of the Dow Jones Industrials from Sept 28/00 to
early November. The First graph ends on November 3/00, two days
before an upcoming critical day on November 7/00. Our members
looking at the market are expecting a trend reversal to occur due to the
high rate of success in our research. Ideally a member will be using
their own skills to judge the supply and demand changes, using technical
and fundamental indications to confirm suspicions of a reversal, and trade
accordingly. |
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| On
the second graph we see that the price action on November 6 was a bullish
day, reversing the short trend so that the short trend leading into the
critical day is now up. A critical day is an expectation of a
reversal of the short trend that immediately precedes the critical
day. In the case of the November 7 signal, given to members 3 days
before, is an indication that the upward moving trend, recognized at the
close of November 6 is expected to reverse direction. |
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| On
the third graph we can see that November 7 was a low volatility after a
large gain on November 6 of about 160 points for the Dow Jones
Industrials. The subsequent move over the three days following the
November 7 signal saw the Dow Jones Industrials fall 376 points. The
next day, November 13, the Dow Jones Industrials lost an additional 83
points with intra-day low a full 609 point loss since the open on the
critical day. |
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Most recent signals
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.
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Tech
Studies
Advance
Decline Line
Andrews
Pitchfork
Arms
Index
Bollinger
Bands
Breakaway
Gap
Breakout
Candlesticks
Chart
Types
Comparative
Relative Strength
Congestion
Pattern
Consolidation
Correlation
Analysis
Continuation
Patterns
Convergence/Divergence
The
Critical Day
Cup
and Handle
Daily
Range
Directional
Movement
Doji
Double
Top/Bottom
Elliot
Wave Pattern
Envelopes
Exponential
Moving Average
Flag
Head
and Shoulders
Gaps
MACD
Market
Volatility
Momentum
Momentum
Indicators
Moving
Average Crossovers
Multiple
Linear Regression
Neckline
Negative
Divergence
On
Balance Volume
Parabolic
Stop and Reverse
Peaks
and Troughs
Point
and Figure
Price
Earnings
Range
Regression
Analysis
Resistance
Relative
Strength
Rotation
Short
Selling
Short
trend
Simple
Moving Average
Standard
Deviation
Stochastic
Support
Technical
Analysis
Trading
Bands
Trading
Range
Trailing
Stop
Trend
Trend
Channel
Trend
Line
Trending
Market
Trend
Reversals
Triangles
Volume
Volatility
Whipsaw
Williams%R
Zig
Zag
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