The market has an internal fractal structure which repeats itself (far from always...), until the pattern changes, that is what the model uses for short term swings.
Hi Zeev
Interesting! I didn't know you followed fractals. We started a whole discussion on Fractals http://www.suite101.com/discussion.cfm/investing/91192/1-4/#message_3 with a few books listed there when some people showed up and said how well they did with that technique. Did you read any of those books, read different ones, or come up with the technique you use yourself?