"2005 I introduced and identified a ‘new’ pattern that has a statistically significant chance of price follow through. This was extremely important for short-term intra-day traders. There are a few market patterns that occur with such unbelievable regularity that you must become aware of them. No one, to my knowledge has engaged in more in-depth research (in this area).
Spiral-Points are simply support and resistance. It’s one of the most important elements of technical trading. Why? Because it eliminates most of the guesswork and allows the trader to make logical, well-supported trading decisions, rather than impulsive, emotion-driven choices.
Spiral-Points attempt to recognize such patterns by identifying entry and exit points based on True Range of the market. Spiral-Point Trading is the perfect tool for swing and momentum trading, as price moves from one point until the next.
What the Dilernia Model is for Trend trading, 'Spiral-Points' are for day trading.
What makes a spiral-point so powerful is that there will be a ‘spiral-point’ each and everyday. They are ‘probability-patterns’ that have a greater chance than 50/50 of repeating over and over again. Even though they function under ‘randomness’, it’s the Risk-Reward of the pattern that matters most.
Whenever a trader is confronted with a ‘probability-pattern’ then that individual person has to have a good grasp and understanding of what the risk and rewards are, and another trader confronted with the exact same pattern should have the exact same understanding. That is what makes a successful methodology, a method that makes consistent profit and protects capital.
Whenever a ‘spiral-point’ is formed it becomes part of a Swing trade or a Momentum trade because price has to move away the same statistical range before the next Spiral point is formed. These levels define ‘high-probability’ support and resistance, and like all support and resistance there is an expectation that price will move with the overall trend of the market defined by the Dilernia Model."
Taken from... " the trader trading "principles of successful trading"
**Above is the SPI daily chart (left) along with spiral points on the Right
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