DislikedHi Foggy,
Yes, I realise that any methodology will give some false signals no matter how good of a trader you are. I have read some of Demarks stuff and I just find it a bit confusing. Even though I find Demark's writing a bit confusing I find your TD indicator quite useful especially for locating areas of support and resistance. The GBPUSD trade I posted was just support and resistance and it was a really nice set up. From your example I see what you mean about the 9th candle and I will take a closer look to see if trading those breaks looks profitable...Ignored
Yes, if you read Jason Pearls book about DeMark, although very good, you will be even more confused. There are loads of different types of DeMark methods and they take a lot to get used to although so far I just trade the TDST support/resistance levels. However, I am looking into another way of trading the TD setups using my thrust method and at first glance it looks really good, but the stoploss might be a bit higher as it works better on higher timeframes like 30 minute and higher, I will post once I do some more testing over the festive period.
To answer your question about the line that changes colour and disapears. Right, the rule of DeMarks TD Setups is that each bar must close lower or higher than four bars earlier until we get nine in a row of the same direction and that is your TD Setup. The reason the line keeps changing colour and disapearing is because it is a possible TDST level. It might be green because the current bar is about to close higher than four bars before it. Then it will disapear because the candle comes below the close of four bars at which point it might change to red because it might now close below the close of four bars before and therefore be a possible TD Buy setup instead. So this can change all the time on the price action of each individual bar. Watch carefully at a current setup and look where the close of four bars ago is, then watch when the price suddenly goes over there the whole count will disapear. Think you will get it now.
Cheers
Foggytrader