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22. Feb
2012
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The Four Percent Model is a stock market timing tool based on the percent change of the weekly close of the geometric Value Line Composite Index. It is a trend following tool designed to keep trader in the market during major up moves & out (or short) during major down moves. A significant strength of this model is its simplicity. The Model is easy to calculate and to analyze. In fact, only one piece of data is required the weekly close of the Value Line Composite Index. A buy signal is generated when the index rises at least 4% from a previous value. A sell signal is generated when the index falls at least 4%. Here is an example of this model to clarification.
