Long a secret weapon of the hedge-fund elite, the DeMark indicators are now used by more than 35,000 traders. This book provides an easy-to-follow system for using the indicators to identify market turns as they happen. Author Jason Perl gives a concise introduction to thirty-nine of the indicators, and then shows how to combine the indicators and time frames to achieve a higher probabilty of trading success. Thomas R. DeMark, the creator of the DeMark indicators and one of the most well-respected practitioners of technical analysis, wrote the foreword to this book.
Author(s): Jason Perl
Series: Bloomberg Market Essentials (Technical Analysis)
Edition: 1
Publisher: Bloomberg Press
Year: 2008
Language: English
Pages: 208
DeMark Indicators......Page 7
Contents......Page 9
Foreword......Page 17
Acknowledgments......Page 21
Introduction......Page 23
Author’s Note......Page 27
About DeMark Indicator Trademarks......Page 29
1 TD Sequential: Defining the Trend and Identifying Exhaustion Points......Page 31
Bearish TD Price Flip......Page 32
TD Buy Setup......Page 33
Interruption of a TD Sell Setup......Page 34
Using TDST Levels to Determine the Underlying Trend Bias......Page 35
TD Setup Scenario I: Consolidation/Reversal......Page 36
TD Setup Scenario II: Confirmed Trend Extension......Page 38
TD Buy Setup “Perfection”......Page 39
TD Buy Setup “Perfection”......Page 41
Trading a TD Buy Setup......Page 42
Perl’s Rules for Trading TD Buy Setups Objectively......Page 43
Trading a TD Sell Setup......Page 44
Perl’s Rules on When to Initiate a Short Position Following a Completed TD Sell Setup......Page 46
To Initiate TD Buy Countdown......Page 47
To Complete a TD Buy Countdown......Page 49
TD Buy Countdown Cancellation Qualifier I......Page 51
An R Will Appear......Page 52
Two Ways to Enter a Long Position......Page 54
Requirements for a TD Clop Buy Signal......Page 55
Risk Management: For a TD Buy Countdown......Page 56
Frequently Asked Questions......Page 58
Requirements for Validation of a TD Sequential 9-13-9 Buy Count......Page 59
To Complete a TD Sell Countdown......Page 61
TD Sell Countdown Cancellation Condition I......Page 64
Entering a Short Position Following a Completed Thirteen TD Sequential Sell Countdown......Page 65
Alternative Strategy for Entering a Short Position......Page 66
TD Camouflage Sell Signal Requirements......Page 67
TD Sell Termination Count......Page 68
Frequently Asked Questions......Page 69
Risk Management: For a TD Sequential 9-13-9 Sell Count......Page 71
Combining Time Frames for Additional Confidence......Page 73
Frequently Asked Questions about TD Sequential......Page 76
Risk Management for TD Sequential......Page 79
TD Sequential: Recommended Settings......Page 87
TD Aggressive Sequential......Page 88
TD combo Buy Setup......Page 89
Requirements for a TD Combo Buy Countdown Version I (Strict Version)......Page 90
Requirements for a TD Combo Buy Countdown Version II (Less-Strict Version)......Page 91
Requirements for a TD Combo Sell Setup Version I......Page 92
Differences in Sell Countdown: TD Combo vs. TD Sequential......Page 93
Requirements for a TD Combo Sell Countdown Version I (More Strict)......Page 94
Risk Management: Calculating the Risk Level of a Short Position Following a TD Combo Sell Countdown......Page 95
TD Combo Version I: Recommended Settings......Page 96
3 TD D-Wave......Page 99
The Underlying Elliott Wave Principle......Page 100
Elliott Wave Basics......Page 101
DeMark’s Mechanized Version of Elliott Wave......Page 103
TD D-Wave Requirements for Wave 3......Page 104
TD D-Wave Requirements for Wave A......Page 105
Additional Qualifying Rules for the Application of the TD D-Wave Indicators for an Uptrend......Page 106
Additional Qualifiers for the Application of the TD D-Wave Indicators for a Downtrend......Page 107
Bull Market Price Projections......Page 108
Bear Market Price Projections......Page 110
To Calculate TD D-Wave C......Page 112
The Relative Strength Index......Page 113
TD D-Wave: Recommended Settings......Page 119
4 TD Lines
......Page 121
TD Demand Line Qualifier Condition One......Page 124
TD Demand Line Qualifier Condition Two......Page 125
To Determine the Objective for a Qualified Downside Violation......Page 126
TD Supply Line Qualifiers......Page 127
Initiation of a Fresh Long Position Qualifier One......Page 128
Initiation of a Fresh Long Position Qualifier Two......Page 129
TD Supply Line and Exiting a Long Position......Page 130
TD Lines: Recommended Settings......Page 131
Determining References for Projecting TD Relative Retracements......Page 133
Three Conditions for Validating a TD Relative Retracement Level: Only One Needs To Be Satisfied for a Qualified Break......Page 136
Conditions That Qualify a Downside Break of a TD Relative Retracement Level......Page 137
TD Relative Retracement: Recommended Settings......Page 138
Another Reversal/Consolidation Pattern......Page 139
Recommended Settings for TD Absolute Retracement......Page 140
Constructing the TD Retracement Arc for Upside Retracements......Page 141
Constructing the TD Retracement Arc for Downside Retracements......Page 142
TD Trend Factor......Page 145
To Determine a Top from Which to Calculate......Page 146
To Determine a Bottom from Which to Calculate......Page 148
Frequently Asked Questions......Page 150
TD Propulsion......Page 151
Defining the Initial Thrust Level for a Decline......Page 152
TD Propulsion: Recommended Settings......Page 153
In Case You Need Prompting on the RSI…......Page 155
TD REI Formula......Page 158
Using the TD REI to Identify Prospective Reversals......Page 159
For the Mathematicians......Page 160
TD REI: Recommended Settings......Page 162
TD DeMarker I......Page 163
Other Conditions That Must Be Satisfied for a Prospective Buy......Page 164
TD DeMarker I: Recommended Settings......Page 165
TD DeMarker II......Page 166
The OBV Indicator......Page 167
TD pressure: Recommended Settings......Page 169
TD ROC: Recommended Settings......Page 170
TD Alignment......Page 171
TD Alignment: Recommended Settings......Page 172
8 TD Moving Averages......Page 175
To Identify a Prospective Bearish Trend......Page 176
Plotting a Bearish TD Moving Average I......Page 177
TD Moving Average I: Recommended Settings......Page 179
TD Range Projection......Page 183
The Three Possible Scenarios and How to Calculate Them......Page 184
TD Range Expansion Breakout (TD REBO)......Page 187
To Apply TD REBO to Daily Price Bars and Use the Current Price Bar’s Open as the Base......Page 188
TD Channels......Page 190
TD Channel I......Page 191
TD Channel II......Page 192
Conditions Necessary to Produce a TD Differential Up Arrow......Page 195
Conditions Necessary to Produce a TD Differential Down Arrow......Page 196
Conditions Necessary to Produce a TD Reverse Differential Down Arrow......Page 197
TD Anti-Differential Up Arrow......Page 199
Conditions Necessary to Generate a TD Anti-Differential Down Arrow......Page 200
TD Waldo Pattern Two......Page 201
TD Waldo Pattern Four for a Prospective Bottom......Page 202
TD Waldo Pattern Six for a Prospective Bottom......Page 203
TD Waldo Pattern Eight......Page 204
12 Putting It All Together......Page 205
The UBS FX Risk Index Components......Page 209
13 Learning the DeMark Indicators......Page 211
Using TD Cursor Commentary......Page 212
TDRS $lt;GO>......Page 213
Index......Page 217
