How Five Market Timing Signals Captured 4,500 Points While Avoiding Two Major Declines
One of the most common questions we hear from traders is: “Can a systematic approach really identify market turning points in real-time?” The answer is yes—when you have the right tools and a disciplined, rule-based methodology.
Let me show you exactly how AIQ Market Timing navigated a volatile 2.5-month period from October 2025 through January 2026, capturing three significant rallies totaling 4,500 points while protecting capital during two major reversals totaling over 3,000 points of decline.
The Setup: Multiple Bullish Confirmations (October 20, 2025)
On October 20th, AIQ Market Timing issued a 98 UP signal at 46,707 on the Dow Jones Industrial Average. But this wasn’t just a single indicator flashing green—it was a confluence of five critical rules firing simultaneously:
Rule #1: Trend Status Confirmation
Trend Status changed to a weak upward trend
This indicated an upward trend was starting that could continue
Classification: Moderate bullish signal
Rule #2: Exponentially Smoothed A/D Line
The smoothed advance/decline line turned positive
Key factor: The UD volume oscillator and A/D oscillator were ALREADY positive
This alignment is viewed as bullish, often preceding upward price movement
Rule #3: Up/Down Volume Oscillator
The UD volume oscillator turned positive
Confirmation: A/D oscillator and smoothed A/D line were already positive
This convergence signaled institutional buying was building
Rule #4: Advance/Decline Oscillator
The A/D oscillator turned positive
Supporting indicators: UD volume and smoothed A/D line already positive
Multiple breadth measures confirming the move
Rule #5: Volume Accumulation Alignment
A/D oscillator turned positive with volume accumulation already positive
In a weak upward market, this signals prices could continue rising
Professional money was accumulating positions
The Result: +1,333 Points in 8 Days
The market moved from 46,707 on October 21st to 48,040 on October 29th—a gain of 1,333 points (+2.85%) in just eight trading days.
This is the power of waiting for multiple confirming indicators rather than jumping on single signals. The system identified strong internal market momentum that wasn’t yet obvious to casual observers.
The Top: System Catches the Reversal (October 30, 2025)
Just one day after the market high, on October 30th at 47,659, AIQ Market Timing 98 issued a DOWN signal. The system caught the top within just 11 points of the absolute high (48,040 vs. 47,659).
Two Critical Bearish Rules Fired:
Rule #1: Breadth Deterioration
The exponentially smoothed A/D line turned negative
Warning sign: UD volume oscillator and A/D oscillator were already negative
This indicated institutional distribution was underway
Rule #2: Volume Accumulation Breakdown
Volume accumulation turned negative
The A/D oscillator was already negative
In a downtrending market, this bearish signal often precedes price declines
Initial Decline: -1,164 Points in 7 Days
From the October 31st level of 47,659, the market dropped to 46,495 by November 7th—a decline of 1,164 points (-2.44%) in seven trading days.
Traders following these signals would have been long for the +2.85% rally and either flat or profitably short for the -2.44% decline.
The Confirmation: Second Down Signal (November 4, 2025)
On November 4th, while the market was still declining, AIQ Market Timing 98 issued a second DOWN signal, reinforcing the bearish outlook. This is where systematic trading truly shines—when multiple signals confirm the trend in real-time.
Three Additional Bearish Rules Fired:
Rule #1: Trend Status Reversal
Trend Status changed to a weak downward trend
This confirmed the downward trend was likely to continue
Classification: Moderate bearish signal
Rule #2: Stochastic and Volume Divergence
Volume accumulation percentage was decreasing
The 21-day stochastic moved below the 80% line
In a downtrending market: Strong bearish signal
This combination often precedes significant downward price movement
Rule #3: UD Volume Oscillator Breakdown
The UD volume oscillator turned negative
Critical context: Smoothed A/D line and A/D oscillator were already negative
This confirmed selling pressure was intensifying
Signal #3: Back to Bullish (November 10, 2025)
On November 10th at 47,368, AIQ Market Timing issued an UP signal (97), indicating the correction had run its course and a new upward move was beginning.
Four Powerful Bullish Rules Fired:
Rule #1: Exponentially Smoothed A/D Line
Turned positive with UD volume oscillator and A/D oscillator already positive
This alignment indicated strong bullish internal momentum building
Rule #2: Advance/Decline Oscillator Confirmation
Turned positive with UD volume oscillator and smoothed A/D line already positive
Multiple breadth measures confirming the new uptrend
Rule #3: Volume Accumulation Alignment
A/D oscillator turned positive with volume accumulation already positive
In a sideways market, this signals prices could begin upward movement
Professional buying was returning
Rule #4: New High/New Low Reversal
The NH/NL indicator reversed to the upside
Classification: Reliable bullish signal
Often followed by upward price movement
In a sideways market, an uptrend could start shortly
The Rally: +1,063 Points in 3 Days
The market surged from 47,384 on November 11th to 48,431 on November 13th—a gain of 1,040 points (+2.22%) in just three trading days.
Signal #4: The Top Again (November 13, 2025)
At the market high of 48,233, AIQ Market Timing issued a DOWN signal (100), once again catching the reversal with precision.
Five Bearish Rules Fired:
Rule #1: Stochastic and Price Phase Weakness
21-day stochastic declined below the 80% line
Price phase indicator also decreasing
In the uptrending market: Weak bearish signal indicating possible near-term decline
Rule #2: Smoothed A/D Line Breakdown
Turned negative with UD volume and A/D oscillator already negative
Clear sign of breadth deterioration
Rule #3: UD Volume Oscillator Reversal
Turned negative with smoothed A/D line and A/D oscillator already negative
Institutional selling was intensifying
Rule #4: A/D Oscillator Breakdown
Turned negative with UD volume and smoothed A/D line already negative
All breadth measures aligned bearishly
Rule #5: New High/New Low Reversal
The NH/NL indicator reversed to the downside
Classification: Reliable bearish signal
Often followed by downward price movement
In an uptrending market, a trend reversal could occur
The Decline: -1,500 Points in 7 Days
From November 14th’s open of 47222, the market plunged to 45,728 on November 20th—a drop of nearly 1500 points (3.16%) in five trading days.
This was a significant correction that caught many traders off guard. But AIQ Market Timing identified it precisely at the top.
Signal #5: The Current Rally (November 18, 2025 – Present)
On November 18th at 46,091, AIQ Market Timing issued an UP signal (96), catching the bottom of the correction and positioning traders for what would become a powerful sustained rally.
The Rally Continues: over 3000 Points and Counting
From the November 19th entry at 46,138, the market has surged to 49,616 as of January 13, 2026—a gain of over 3,300 points (+7.0%) that is STILL RUNNING.
This ongoing rally has already lasted 45 days and shows the power of staying with a trend when the system confirms the move.
The Complete Picture: What This Teaches Us
Over a 2.5-month period from October 21, 2025 to January 9, 2026, AIQ Market Timing issued five signals:
The Numbers Are Staggering
Total gains captured: over 5,000 points across three rallies Total declines avoided: over 3,000 points across two corrections Current position: Still long in a rally that has gained 7.0%
Compare this to buy-and-hold over the same period:
Started: 46,707 (Oct 21)
Current: 49,504 (Jan 9)
Buy-and-hold gain: +2,797 points (+5.99%)
This sequence demonstrates several critical principles of successful systematic trading:
1. Confirmation Over Single Indicators
Every up signal had multiple rules firing together—not weak, isolated signals but powerful confluences showing aligned market internals. Signal #1 had five rules, Signal #3 had four rules including the reliable NH/NL indicator.
2. Speed Matters
The system caught reversals with remarkable precision: one day after the October high, right at the November 13th high. Manual observation would have missed these turning points.
3. Internal Strength vs. Price Action
The breadth indicators (A/D measures, volume accumulation, UD volume, NH/NL) detected shifts in market character before they became obvious in price alone.
4. Consistency Across Different Market Conditions
This wasn’t a lucky streak. The system worked in:
Weak upward trends (October)
Weak downward trends (early November)
Sideways markets (mid-November)
Strong sustained uptrends (late November – January)
5. Multiple Cycles Compound Returns
Notice how the system didn’t just catch ONE move—it navigated FIVE distinct market phases. This is where systematic trading truly shines: the ability to stay on the right side of the market through multiple cycles.
6. Reliable Indicators Add Conviction
The New High/New Low indicator appeared in both Signal #3 (bullish reversal) and Signal #4 (bearish reversal), classified as “reliable” both times. When these high-probability signals appear, they deserve attention. Adding in the Phase indicator, confirmation was present for all the signals and is considered a valid confirmation within +/- 3 days of the signal.
7. Both Sides of the Market
This wasn’t just about catching rallies. The system protected capital by identifying when conditions changed, allowing traders to exit longs, stay in cash, or even profit from declines totaling 3,669 points.
Multiply this advantage over weeks, months, and years, and you begin to understand why systematic, rule-based trading provides such a significant edge.
The Bottom Line
AIQ Market Timing isn’t about predictions or gut feelings. It’s about:
Objective rules that fire based on market internals
Multiple confirming indicators that reduce false signals
Real-time alerts that keep you informed as conditions change
Historical validation proving the methodology works across different market environments
Consistent performance across multiple market cycles
Are you ready to trade with this level of systematic precision? $1 trial available
Learn more about AIQ Market Timing 98 and other professional-grade technical analysis tools at AIQ Systems.
Past performance does not guarantee future results. All trading involves risk. The examples shown are for educational purposes and represent act
They cut through the noise and reveal high-probability trade setups. That’s where TradingExpert Pro’s AI-based expert ratings come in. With over 400 built-in rule sets, this proprietary system assigns a bullish or bearish score to each stock, ranging from +100 (strong buy) to -100 (strong sell).
These scores are generated from technical rules developed by top traders and analysts, analyzing indicators like RSI, MACD, stochastic, volume, momentum, and dozens more. The AI scans every stock nightly, summarizing complex conditions into one clear rating. Traders use these scores to validate their setups, spot new opportunities, and avoid false breakouts.
In short, it’s a technical signal aggregator that saves time, reduces bias, and adds discipline — everything a serious trader wants.
WinWay’s Expert Rating signals are designed to anticipate changes in the direction of price movement. Some are accurate, while others are not. However, more often than not, the Expert Rating signals are accurate. Of the accurate signals, some are received early, some are received late, and some are accepted at the perfect time. Since traders cannot predict next week’s market prices, they must decide whether to make a trade or to stand aside based on the information available.
In order to help the prudent trader increase the number of profitable trades, WinWay TradingExpert Pro provides a wide array of information that can be used for signal validation. The process of using other information to validate signals is called signal confirmation. Signal confirmation is accomplished in a variety of ways. Inherent in each method is a certain risk vs. reward characteristic; the specific method must be decided by each trader. As the level of confirmation increases, the level of risk is reduced. As risk is reduced, the level of potential reward is also reduced. Traders must balance their levels of risk tolerance against their reward objectives.
The Signal Confirmation rules are: 1. No Confirmation 2. Price Confirmation 3. Price/Volume Confirmation 4. Independent Corroboration by Separate TradingExpert Components Important
it’s been a challenging market this year, and making trading decisions has never been easy. Which direction the market is likely to move plays a huge part in stock trading decisions.
The Expert Rating system on the market with its combination of 400 rules on the Dow 30 index and the NYSE internals has always provided us an early indication of direction changes.
No system is infallible, and when the Expert System on the market was created, we noticed that ratings of 95 or higher to the upside or downside (maximum rating is 100 btw) were significant. We also noticed a marked improvement in the accuracy of the ratings if we used a confirmation technique with a momentum indicator.
After much research, we discovered that the Phase Indicator (a version of a MACD histogram) was the most accurate tool to confirm high ratings.
*** Here’s how we use Phase to confirm a high Expert Rating. ***
When a rating of 95 up or 95 down is triggered on the market, we look for the Phase histogram to change direction. The change in direction must be to the direction of the rating. This change does not have to happen on the day of the rating, but it must occur within 2 to 3 days on either side of the rating day.
If the Phase does not change direction, the rating is considered not confirmed.
This short video analysis of the last 4 ratings shows this process in action.
The WinWay TradingExpert Pro Market Timing signals are not a perfect system. If they were no doubt the founders would have kept it secret and traded the signals themselves.
The signals that give us early waring of a change in direction of the market are proprietary. The 400 rules that are used by the Artificial Intelligence inference engine to determine change of market direction use many of the widely known technical tools, read review here.
The rating calculation and the indicators contributing to the ratings have not been changed for many years. A decision was made some years ago to avoid constantly moving the goalposts as the constant optimizing or back fitting erodes the validity of the system.
High ratings to the upside or downside of notice have to be 95 or greater (the maximum is 100). the ratings are considered confirmed when the Phase indicator that is outside of the AI system, changes in the direction of the high rating.
So ratings have fired in the last few months how do we confirm them?
We look for the Phase indicator ( a derivative of MACD) to change in the direction of the signal. This needs to occur within a 3 day window before or after the rating.
The last 2 market timing signals illustrate this nicely.
August 18, 2022 97-2 up signal on the market
The up signal occurred during a a 3 day down period on the uptrend, however the Phase indicator did not change direction (it would need to turn up after going down) within the window for confirmation. This signal is therefore unconfirmed by Phase.
August 22, 2022 down signal on the market
The down signal occurred on 8-22-22. 100 down is the strongest signal the market timing generates. In this case the Phase turned down after a prolonged upward move, on the day before the signal. This is considered a confirmed down signal on the market.
The rules that contributed to 0-100 down on the market
The 100 down signal is the strongest signal the AI system generates. Here are the major technical events that contribute to this rating.
Trend Status has changed to a strong down trend. This indicates that a downward trend has started that may continue in this direction. This is a moderate bearish signal.
The 21 day stochastic has declined below the 80% line and the price phase indicator is decreasing. In this strongly downtrending market this is an indication that the downtrend will continue.
Volume accumulation percentage is decreasing and the 21 day stochastic has moved below the 80% line. In this strongly down market, this is taken as a very strong bearish signal that could be followed by a downward price movement.
The exponentially smoothed advance/decline line has turned negative when the up/down volume oscillator and the advance/decline oscillator are already negative. In this market, this is viewed as a bearish signal that could precede a downward price movement.
The up/down volume oscillator has turned negative when the exponentially smoothed advance/decline line and the advance/decline oscillator are already negative. In this market, this is viewed as a bearish signal that could precede a downward price movement.
The new high/new low indicator has reversed to the downside. This is a reliable bearish signal that is often followed by an downward price movement. In this market a continued strong downtrend can be expected.
As we reach the end of March 2022, the volatility in the markets continues with large range days and varying volume levels.
When the market is in a trend, we might see 2 or 3 high Expert Ratings warning us of a potential change in direction. At the tail end of 2021 and the first 10 days of 2022, we had 3 down signals, the last of the 3 at 1-99 was on 1/10/22. The market moved down solidly to the 33280 level before rallying 2/3rds of the down move.
There was no up rating at the bottom as prices moved back up and one up rating early February that didn’t pan out. However, between 2/24 and 3/16 there was six signals, 5 of them up. That’s in only 14 trading days.
Between the 2/24 up signal and the 3/14 up signal there were 9 distinct bullish ER rules showing. There was also several that were duplicated bullish ER rules. Add to this 4 new distinct ER rules on the up signal 3/16, that adds up to the busiest ER cluster for a very long time.
Here are the first 9 distinct rules contributing the cluster of ratings
The Money Flow Indicator has reversed and is now advancing. In this sideways market, this is read as a bullish indication that the market could move up from this point because of the inflow of funds.
The 21 day stochastic has advanced and crossed the 20% line and the price phase indicator is also in- creasing. In this strongly downtrending market this is taken as a strong bullish signal suggesting an increase in prices.
The price phase indicator is negative but volume accumulation has started to advance. This is a non-conformation that, regardless of the type of market, is a bullish signal which usually results in an upward movement of the market.
The Money Flow Indicator has reversed and is now advancing. In this downtrending market, this is taken as a weak bullish signal that could indicate an upward movement in the market averages.
The advance/decline oscillator has turned positive with volume accumulation already positive. In this strong downward trend this is read as a strong non- confirmation of the current trend which could be followed by a reverse in price direction to the upside.
The new high/new low indicator has reversed to the upside. This is a reliable bullish signal that is often followed by an upward movement in prices. In this strong downtrending market a reverse in trend could start shortly.
Volume accumulation percentage is increasing and the 21 day stochastic has moved above the 20% line. In this downtrending market, this is taken as a strong bullish signal that could be followed by an upward price movement.
The new high/new low indicator has reversed to the upside. This is a reliable bullish signal that is often followed by an upward movement in prices. In this weak downtrending market an uptrend could start shortly.
Intraday low prices of the market have declined to a 21 day low. But the volume accumulation percentage is positive. In this market, this is taken as a weak bullish signal that could be followed by an upward price movement.
So when was the last time we saw this many ratings so close together?
It happens in clusters particularly in advance of a move against the current trend of the market. The ER system is inherently counter trend. This chart shows some cluster from 2009 – 2011.
One example was way back at the tail end of 2007, when another cluster of buy signals occurred in a similar fashion. Following a 100 down on 11/01/07 the market gave ground until 11/08/07, the first of 6 buy signals in 13 trading days through to 11/28/07
The market ERs are not perfect but they provide us with key insights into the way the internals are performing.
Where does the market go from here?
This chart above was back at the start of the 2007/8 bear market. So how do the chart patterns compare between 2022 and 2007/8? The chart below, on the left shows the 2007/8 market through early December 2007 following a strong move up after the cluster of up signals. The right charts shows current market with a strong up move following the cluster of up signals
There are some similarities between current price action and the topping pattern back in 2007, one being the measured way this pattern is emerging over several months. The chart below is the same time periods compared but with the ERs showing.
The bear market that followed in 2008 is in the Chart below.
The market moved down in a series of measured moves until we reached late September 2008 and the sharp downturn occurred. No guarantees we’re in the same market, but keep an eye out for those counter trend cluster ERs if we are, they may provide warning of rallies.
WinWay TradingExpert Pro is programmed with the knowledge and insight of respected technical analysts, experts who have developed technical analysis indicators and systems for the last 50 years. The up/down timing signals issued by TradingExpert Pro are based on this knowledge. Since TradingExpert Pro’s timing signals are generated on a scientific basis, free of bias or emotion, you get a disciplined, objective approach to stock market timing.
The timing signals produced by the WinWay expert system are in the form of Expert Ratings. Behind each Expert Rating is a set of rules that combine the sound principles of technical analysis with the experience of market professionals. Since no single technical indicator works all the time, using indicators in combination increases their reliability. For example, a rule is developed that combines the readings of two or more indicators.
This rule is then more reliable than the reading of a single indicator. Within TradingExpert Pro are two knowledge bases, one specifically designed to issue market timing signals and the other designed to issue stock timing signals. Each TradingExpert Pro knowledge base contains approximately 400 rules, but only a few “fire” on any given day.
In the language of expert systems, those rules that are found to be valid on a particular day are described as having “fired”. Rules can fire in opposite directions. When this happens, the bullish and bearish rules fight it out. It’s only when bullish rules dominate that the Expert Rating signal is bullish, or when bearish rules dominate that the Expert Rating signal is bearish.
Your WinWayCharts includes the AIQ Market Timing AI rating system. In this short video we’ll discuss the last 4 AI ratings on the Dow Jones Industrial average and examine the rules that fired to generate these signals.
AIQ TradingExpert Pro is programmed with the knowledge and insight of respected technical analysts, experts who have developed technical analysis indicators and systems for the last 50 years. The up/down timing signals issued by TradingExpert Pro are based on this knowledge. Since TradingExpert Pro’s timing signals are generated on a scientific basis, free of bias or emotion, you get a disciplined, objective approach to stock market timing.
The timing signals produced by the AIQ expert system are in the form of Expert Ratings. Behind each Expert Rating is a set of rules that combine the sound principles of technical analysis with the experience of market professionals. Since no single technical indicator works all the time, using indicators in combination increases their reliability. For example, a rule is developed that combines the readings of two or more indicators. This
rule is then more reliable than the reading of a single indicator. Within TradingExpert Pro are two knowledge bases, one specifically designed to issue market timing signals and the other designed to issue stock timing signals. Each TradingExpert Pro knowledge base contains approximately 400 rules, but only a few “fire” on any given day.
In the language of expert systems, those rules that are found to be valid on a particular day are described as having “fired”. Rules can fire in opposite directions. When this happens, the bullish and bearish rules fight it out. It’s only when bullish rules dominate that the Expert Rating signal is bullish, or when bearish rules dominate that the Expert Rating signal is bearish.
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