Looking at the above example, you can come to the following conclusions:

A DECLINE into May would imply:
+ A May low
+ Then June showing a change in trend which may be a bounce

A RALLY into May would imply:
+
June would imply a decline

Note:
Shown on top bar labeled “Composite” — it is sum of all models.
They do not reflect direction, but change in trend

Example of Gold Daily in January, 1980

  • The array was compiled was January 9, 1980
  • January 21 was selected as the high in the above composite
  • There were two sets of back-to-back Directional Changes
  • The first direction change was 5 days before the high (this marked the breakout to upside)
  • The second direction change caught the high on 21st of January