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On your model it retards all cylinders at once. Without cracking the manual on it I recall it was a 4 degree retard until knocking subsides and then re-advances at 1 degree per engine revolution until knock and then back 4 and so forth and so on. Total retard I recall being either 16 or 20 degrees. It was a real basic circuit back in the days of your car. As it evolved it got to where it would retard individual cylinders and had a much finer control, none of this 4 steps back and one step forward stuff.
If an engine knocks loudly it may or may not be an indicator. I would simply test it, on those old systems you could put a timing light on it and hit the block with a hammer and actually see the timing retard.
Yes, I would have to assume that the louder the knock the more drastic the timing retard.
Mark
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