Our Approach
Alersal™ analysis creates a market-timing model based on the following three principles:
o There is a market-basis in effect for every instrument at all times. This basis evolves over time and can be determined using statistical regression methods.
o Market participants apply Fibonacci constants to derive trading range for short- and long-term needs. Thus, once the market-basis is known, these constants can be applied to generate trendline equations and actionable trading ranges.
o ‘Reversion To Mean’ psychology combined with conflicting economic narratives creates continuous market movements that, in turn, create frequent opportunities to invest.
