The Four Percent Model study is a trend-following indicator designed for using on weekly charts. Buy signals are suggested when the price moves up by at least 4% of any past value. Conversely, Sell signals are suggested when the price falls by 4% or more of any past value. Buy signals continue until a Sell signal occurs, and vice versa. If a Buy signal is triggered, the Sell signal would not occur until the price falls at least by 4% compared to the previous bar. Once occurred, Sell signals will continue until the Buy signal is issued which would happen when the price rises by at least 4% compared to the previous bar.
||The price used in calculations.|
||The Four Percent Model plot.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.