V.7:10 (333-335): Constructing an efficient short-term timing model by Marcus S. Robinson
Product Description
Constructing an efficient short-term timing
model
by Marcus S. Robinson
You can use two sets of ratios to forecast short-and intermediate-term turning points in stocks and
commodities . In my trading, I look for these "change in trend" (CIT) days using simple ratios rather than
elaborate charting.
The first set of ratios I use is called the Golden Section ratios and the second set is called the Square of
the Range. I'll show you how I use the exact numbers and you can learn more about them through the
references listed at the end of the article.
The first thing is to determine the last intermediate high and low, based on your timeframe. The time
between these two dates will be the "range" of time for predictions. For example, July soybeans peaked
on June 23, 1988 and bottomed 105 market days later (Figure 1).Now, multiply 105 by the "Golden
Ratio" numbers: 1.0,0.892,0.618,0.55 and 0.382. The product of these calculations will be the number of
days to add to the low, producing a number of calendar dates on which turns might be expected (Figure
2).
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