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During yesterday's free live commentary via IRC (the first day of
every month is free), Linda Raschke mentioned her Critical Day Index.
I've never heard of this before and was wondering if anybody else had,
and if anyone had some ideas for constructing it.
The extent of her comments are as follows:
"This index measures when the absolute mean deviation for different
momentum time frames approaches zero. The price behavior becomes
quite erratic. Either an outside day or a trend day tends to be the
outcome. It is just a funky thing to watch....telling you the market
may be schizoid that day... Don't get signals that often."
Apparently, the bond, cocoa and coffee markets all had Critical Day
index readings going into trading on Monday, 1/4.
After some additional inquiry, I was told that it was based on daily
ROC.
Any ideas are welcome!
Bob Hunt
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