Here's the basic rules to the methodology:
1. Let a trend occur.
2. Wait for a consolidation.
3. Count the # of time units that touch the most frequent price of the consolidation.
4. Once completely detached from the consolidation (an entire range above it) then count an equal amount of time in the next leg of the trend as the consolidation.
You can see I have labeled this chart accordingly and you can also see the methodology has done a decent job of locating the end of the move. It isn't perfect, but it isn't too bad.
You can also see that the current downtrend is running out of time and look for any pockets of strength to indicate a low-risk turn in this ratio back to the upside.
Tim 4:09PM Monday, January 12, 2015