A pattern consists of signals from the C, S and I-fund. And there are eight possible patterns to track each market day's result.
The S&P 500 has a winning percentage of 53% over the last 40 years, so a pattern is considered to be in an uptrend if it's ebbtally percentage goes over 53% (2012 CSI).
This is the up-to-date 5 yr. ebbtally compiled since 2007. Notice how patterns with 2 or more red signals (bearish sentiment) -- 5 (59%), 8 (58%), 3 (57%) and 6 (52%) -- have a higher win-loss percentage than patterns with 2 or more green signals (bullish sentiment) -- 1 (51%), 7 (51%), 4 (53%) 2 (54%). That's the contrarian trading strategy at work -- markets tend to go up when sentiment is bearish and down when sentiment is bullish. I didn't think the ebbtally total would result in 8 of 8 patterns hitting it right on target because the odds are against it. The chances of that happening are 1 in 256 (0.5 ^ 8), so it all boils down to having the right data collected (by the ebbtracker database) daily. Note: When following the long-term indicators (triple patterns), one should look at triple patterns 5 and 8 for entry and triple patterns 1 and 7 for exit. Triple-pattern signals show up once or twice a year, so two patterns with the highest or lowest win-loss percentage can be used successfully as entry or exit signals. Triple-pattern appearances: bearish pattern 1-1-1 (Apr. 16, 2007); bearish pattern 7-7-7 (Feb. 22, 2008 and Nov. 07, 2008); bullish pattern 5-5-5 (Apr. 20, 2009 and Jun. 29, 2010); bullish pattern 8-8-8 (Oct. 27, 2011). Triple patterns should be looked at as aberrations or anomalies that mark turning points in the market.