There's nothing on that chart. Here's a response from another board from another guy I respect. Someone copied your post and asked him about it:
A 7 day moving average will not "pinpoint" any major trend change until well after the fact, since it will turn up or down almost on a dime, and will be subject to many whipsaws. You won't know when it has turned for real until it has made a major move in the opposite direction, by which time the move will be well under way and obvious to everyone. This is a great example of a backtested strategy that has no practical application in real time. Using March 21st of this year as an example of where it pinpointed a "top"? C'mon. A wiggle top at best. That top lasted barely a week and look where we are since.
And, oh BTW: the 7 DMA of actual index prices is even more miraculous in "pinpointing" tops and bottoms:
Culmus(regards our CPC discussion)---As i noted i have been measuring the 7ema and 21ema for SC numbers to see their lows. And 7ema was 0.62 and 21ema of 0.71 on Friday, putting at a third lowest combo in 2 years. But went a step further and got a reading 0.59 for 5ema and 0.63 for 8ema , this the lowest reading for BOTH since 8/2/2001(which preceded a severe sell off)--the readings then were 5 ema 0.58 and 8ema 0.60. What were your 7 and 21dma for Friday, and how do the rate versus the past 2 years??? Godfrey/Max