The 4% Model: Using The Value Line Composite by Bob Kargenian, C.M.T.
ARTICLE SYNOPSIS ...The 4% Model: Using The
Value Line Composite
by Bob Kargenian, C.M.T.
Looking for an indicator that doesn't predict huge booms or busts, but tells you what the safest course of
action is? Here it is. For this model, all you need is the Value Line Index. It's simple, but it works. Here's
Originally, the 4% model was developed by Ned Davis of Ned Davis Research fame as a method with
which to follow the trend of the stock market. Simply, a buy signal is given when the weekly close of the
Value Line Index rises 4% or more from any weekly close; a sell signal is given when the weekly close