Our main differentiation from other tools (yes, we know they are a-plenty) is that we give importance to the Volume of transactions, as opposed to looking only at Price, or Close Price.
Here you will find a Whitepaper that explains the mathematics that make Viracocha analysis, and also some full detail on the interpretation of the results. I have added also a couple of the examples that we have already published in this blog. The examples are the 1929 Crash, and the explanation of The Market of Lamps.
Viracocha (Vira) is a mathematical methodology that calculates historical variability of change in a stock’s daily price and trading volume and then compares its most recent daily change with its expected variability. Vira then assigns a low, middle (expected) or high range of movement to the daily change and plots the resulting information for both share price and trading volume. The direction and magnitude of divergence of the two plotted lines can be used to identify potential buy and sell opportunities for the stock.
This discussion document states the mathematical notation that will explain in full the methodology. It also will discuss some avenues towards interpretation of the results.
Here you can download the White Paper Vriacocha