The Mayer Multiple is an oscillator calculated as the ratio between price, and the 200-day moving average. The 200-day MA is a widely recognised indicator for establish macro bull or bear bias. The Mayer Multiple therefore represents a measure of distance away from this long-term average price as a tool to gauge overbought and oversold conditions.
Following the original analysis, overbought, and oversold conditions, have historically coincided with Mayer Multiple values of 2.4, and 0.8 respectively. These multiples are then applied to the 200DMA to establish cycle top and bottom pricing models.
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