Timing Model for High-Yield Bonds

This timing model is outlined in the book "Opportunity Investing" by Gerald Appel.
He calls this strategy "1.25/0.50".

This timing model presumes that if high-yield bonds have been in a downtrend, and then rise in price by 1.25% from a low price level, the downtrend has come to an end (a buy signal).

The model also presumes that if high-yield bond funds have been advancing in prices, a decline of 0.50% in the prices of such funds from their most recent high level indicates that there are good chances of ongoing decline (a sell signal).