The Index Trend Model calculates how bullish or bearish the markets are based on the trend and the big picture price action.
Phases
Bullish - Retrace (Looking to add longs)
Bullish - Extended (Trail mode on longs to lock in swing trade gains)
Bearish - Retrace (Looking to add shorts)
Bearish - Extended (Trail mode on shorts to lock in swing trade gains)
Mixed - Rangebound 

Market Cycles. Its good to know where you are in the bullish or bearish market cycle. Obviously the best gains are made by entering early in the bull market cycle on the long side. I dynamically adjust my maximum risk in line with the ITM reading so I lower my exposure as the market retreats and vice versa. 
Below is a slideshow of the index trend model readings leading up to the black Monday crash.