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Critical Day Analysis

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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WALK THROUGH A CRITICAL DAY

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ECONOMY

The long term price direction of the market is determined by the fundamental and economic trends that produce the various growth rates for corporate profits and changes in supply and demand in all aspects of any tradable. This is a given. Therefore the long term trend in the markets is a long term view of what has been acceptable in this scope. The intermediate trend of the markets can sometimes be an adaptation to maturing events. And of course the short trend of the markets can be a reaction to an event, release or influence of a fundamental of economic basis. Daily price action for any tradable is often the noise of the market given the participation level of current supply and demand elements. The overall economic conditions and the fundamental trends for any tradable help identify major demand and supply groups and participation levels. This can add a great deal toward understanding the potentials of any given day. With our critical day analysis identifying when to expect a reversal of the short trend, it becomes immediately apparent that a closer understanding of market forces and strategies can develop through an understanding of the general trends in economic and fundamental conditions of any tradable. In short it is very important to be aware of the economic and fundamental trends and potential events that mature an economic or fundamental outlook when trading the markets.

What we do at Trade10.com is a research that produces potential pivot points or trend reversal points in advance. For example we might tell you on Monday that there is a strong potential that the trend leading into Thursday will reverse and be heading in the opposite direction coming away from Thursday. Historically we have produced better than 80%* success on an average of 5 signals a month since 1994. We tell you when to expect the short trend of the market to reverse. At times when an economic release or important defining event is scheduled on or around a "critical day" we look for the market reaction to that event as a potential catalyst for a change in price trend. Understanding economic and fundamental importance can provide you the keys to a strongly profitable trading mechanism.

An event reaction when combined with our critical day analysis can help identify the catalyst for a trend change or reversal. It is important to know what data is on schedule for release and the potential impact on the markets.

Study of Trends

Trends change when the culmination of changing economic conditions produce a definitive change in market valuation. Evidence that a long term trend in market price is changing, adds importance of new economic data in defining where valuation levels are headed.

When the intermediate trend changes as a response to economic or fundamental changes, we realize the importance of being able to identify the current price trend. Again the study of trends and tools to identify the trend find a strong purpose in a healthy understanding of the market.

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.
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.
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.

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.