ELLIOTT WAVE and FIBONACCI RATIOS are great tools to detect with good accuracy the direction of the trend and also the potential key reversal points.
Do not believe it?
Read below my Elliott Wave analysis of the SPX in the last year
(limited to the junctures useful for the short term trading)
a minor uptrend of an Intermediate Uptrend.
....1200 price area and time between the end of 19 and the early of 20 december, is magnetizing the market's action. It's hard to say that the market has bottoming; the structure seems completed... well, or tomorrow is a key reversal day to open a long position or it's necessary to look for a different scenario...
SPX - Today the third wave starts
my preferred overview is still bullish;
I become bearish 7 trading days later,
with an error of - 3.77% from the Top
and a time error of 7 day!
SPX - NEW COUNT
SPX - Missing another downward wave
I wait for the pullback of wave 2/b to open a long position....
the next day,in pre-market post Monday, November 19, 2012,
SPX - Rebound in progress
.....the market has reached a bottom of intermediate degree and begins a new uptrend (wave (z)