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I saw a description of this many years ago in Futures or TASC I forget.
It looks at oscillators ( I suppose MACD will do) with different time
constants or look back periods. When all these oscillators are near to zero
on the same day that indicates a critical day.
Never used this myself.
Doug Meakin
At 11:31 05/01/99 -0600, you wrote:
>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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