Tom demark Trendlines | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Mouteki/Demark Trendlines 19 replies

tom demark trendlines 2 replies

Auto pivots/Tom DeMark trendlines 1 reply

Anyone following Tom DeMark's methods? 2 replies

Is there a lvl2 Tom DeMark points indicator 15 replies

Attachments: Tom demark Trendlines
Exit Attachments

Tom demark Trendlines

  • #21
  • Apr 29, 2007 8:32am Apr 29, 2007 8:32am
Quoting Mr demark
oh i think he meant this chart
http://i11.tinypic.com/47mb0ar.gif

that is indeed an error
This is an example of a level 1 TDTL, could you explain the error?
  • #22
  • Apr 29, 2007 8:35am Apr 29, 2007 8:35am
Quoting smjones
This is an example of a level 1 TDTL, could you explain the error?
i'm not quite sure if the low on the left is really a low (2 to the left, two to the right)
100% of traders are losers. Just that some win more than they lose!
  • #23
  • Apr 29, 2007 8:36am Apr 29, 2007 8:36am
Can anyone tell me where to get the english version of the indicator that Mr Demark provided? When I attach this indicator to a chart it shows the UTD's & LTD's and then there is just a bunch of confusing code.
Attached Image (click to enlarge)
Click to Enlarge Name: tdtl.1.jpg Size: 49 KB
  • #24
  • Apr 29, 2007 8:36am Apr 29, 2007 8:36am
Quoting Mr demark
i'm not quite sure if the low on the left is really a low (2 to the left, two to the right)
That would be a level 2 TDTL.. This indeed would be an error for a level 2, but not for a level 1
  • #25
  • Apr 29, 2007 8:41am Apr 29, 2007 8:41am
Quoting smjones
That would be a level 2 TDTL.....
thnx
100% of traders are losers. Just that some win more than they lose!
  • #26
  • Apr 29, 2007 9:04am Apr 29, 2007 9:04am
Here's a PDF from Currency Trader that gives an indepth explanation for TD Lines

For Level 1 (Supply Line) - starting from the last closed candle/bar, nearest current price, select the nearest candle/bar that has 1 lower high to the left and 1 lower high to the right of the selected candle/bar. Then move to the left to find the next instance of the same pattern. Reverse the procedure for the Demand Line, but always drawing TD Lines from right to left.

For Level 2 (Supply Line) - starting from the last closed candle/bar, nearest current price, select the nearest candle/bar that has 2 lower highs to the left and 2 lower highs to the right of the selected candle/bar. Then move to the left to find the next instance of the same pattern. Reverse the procedure for the Demand Line, but always drawing TD Lines from right to left.

Hope this helps, there is other stuff in the Mouteki threads that can aid anyone new to this. He used 4hr charts for his methodology.
Attached File(s)
File Type: pdf TDTL.pdf   388 KB | 10,734 downloads
  • #27
  • Apr 29, 2007 9:32am Apr 29, 2007 9:32am
Quoting billbss
I think that pure DeMarkism would disqualify the red trend line you have drawn.

It is violated by the high of the bar following the last fractal that it is drawn to.

I can't quote chapter and verse of DeMark's book that says that, but its in there somewhere.

If I get a chance, I'll try to find it.
I think you're referring to pg 15, middle paragraph (see fig 1.9) in which he says if the CLOSE immediately following a pivot is above or below the trendline, the TL is not invalid, but suspect. In the chart above, the high does break the TL, but it's not a close.

I just got the book last week. It's interesting and I think it'll help with timing issues.
  • #28
  • Apr 29, 2007 9:36am Apr 29, 2007 9:36am
Quoting Dopey
I think you're referring to pg 15, middle paragraph (see fig 1.9) in which he says if the CLOSE immediately following a pivot is above or below the trendline, the TL is not invalid, but suspect. In the chart above, the high does break the TL, but it's not a close.

I just got the book last week. It's interesting and I think it'll help with timing issues.
Thanks for that info, I see what you mean... thereby reducing the frequency of TDTLs

and an example of that would be on page 18
  • #29
  • Apr 29, 2007 9:41am Apr 29, 2007 9:41am
I have version 3.1 in English:
Attached File(s)
File Type: mq4 Ind_TD_DeMark_3_1_LA_Mod_03B_AIME.mq4   22 KB | 4,778 downloads
  • #30
  • Apr 29, 2007 11:45am Apr 29, 2007 11:45am
Quoting Dopey
I think you're referring to pg 15, middle paragraph (see fig 1.9) in which he says if the CLOSE immediately following a pivot is above or below the trendline, the TL is not invalid, but suspect. In the chart above, the high does break the TL, but it's not a close.

I just got the book last week. It's interesting and I think it'll help with timing issues.
You're right.
That's exactly what I was thinking of- the close not the high.
My mistake.
I should have double checked before I wrote anything.
  • #31
  • Apr 29, 2007 1:01pm Apr 29, 2007 1:01pm
Quoting banzai
I have version 3.1 in English:

Thanks Banzai...exactly what I was looking for...I just had not found it yet!
  • #32
  • Apr 29, 2007 11:24pm Apr 29, 2007 11:24pm
Mr. Demark

On the qualifiers do all 4 need to be met or any one of them?
  • #33
  • Apr 30, 2007 4:55pm Apr 30, 2007 4:55pm
any one of the 4 qualifiers would work
100% of traders are losers. Just that some win more than they lose!
  • #34
  • Apr 30, 2007 11:17pm Apr 30, 2007 11:17pm
I like the way this one draws trendlines best. it dosent mess with the forming candle. It also has a alarm
Attached File(s)
File Type: mq4 Mouteki.mq4   20 KB | 4,320 downloads
  • #35
  • May 1, 2007 12:24am May 1, 2007 12:24am
You seem to have found an indicator and not really bothered to understand the theory behind DeMark's trend lines. It would pay you to buy a copy of his book and read it. I have seen a few try to trade using DeMark without understanding what it actually means and blow their accounts.

Also I always thought it was illegal to post copyright material? without the expressed consent of the owner.

//| Ind-TD-DeMark-3.mq4 |
//| Copyright 2005, Kara Software Corp.

Mark
  • #36
  • Jun 30, 2007 8:02am Jun 30, 2007 8:02am
Hi Demark

great job and nice thread i,m new for Demark trend line but i noticed that my demark indicator is diffrent from yours !! whos better


could u explain wht is the information on the left of the chart

Level,BREAK QUALFICTOR,false,source


I use 4 Hr should i enter postion when the candle break the trendline or i should waite till the 4hr candle close above the trend in buy(red trend) and below it in sell(dark blue trend)

regards
Attached Image (click to enlarge)
Click to Enlarge Name: de.jpg Size: 61 KB
Attached File(s)
File Type: mq4 Demark_trend_new.mq4   14 KB | 3,589 downloads
File Type: ex4 Demark_trend_new.ex4   21 KB | 2,400 downloads
  • #37
  • Jun 30, 2007 9:12am Jun 30, 2007 9:12am
Quoting Mr demark
anyone here used TD T'L's? they are over 70% (closer to 90) accurate with breakouts.
Thank you very much for taking time to post this information. The accuracy figures are very interesting. Is this from back testing data?

Can anyone explain the difference between Mouteki and TDMTL ( I know TDM invented these but I mean implementation differences)

thanks again :-)
  • #38
  • Aug 15, 2007 8:41pm Aug 15, 2007 8:41pm
Quoting fxprocessor
Can anyone explain the difference between Mouteki and TDMTL ( I know TDM invented these but I mean implementation differences)

thanks again :-)
From my limited experience in both, one of the major differences is the qualifications for entering a position after the line is broken. If I'm not mistaken, in Mouteki, you only enter on a bar open outside the trend line. However, there are four qualifiers that will allow entry in TD's system. It's possible to enter on a break only, not a close outside, provided certain criteria are met. Actually, it's also possible using TD's method for a bar to open outside the trendline, and provided it doesn't tick further but goes back, this is not considered a valid break. So there are more intricacies with TD's method.
  • #39
  • Edited 10:13pm Aug 15, 2007 10:01pm | Edited 10:13pm
Okay, question. I'm looking in TD's "Day Trading" book, and I realize that the four qualifiers are qualifiers for intraday (i.e., pre-bar-close) breakout entries. He then says this (p. 222):

Quote
"Rather than sell an intraday breakout below a TD Demand line which is not qualified, one would actually buy the false breakout. Whether the trader should take the breakout signal or fade that signal is determined by four qualifiers. Meeting any one of the following four qualifiers validates the TD Line and enables a trader to enter intrabar price breakouts in a trending market. If none of the qualifiers are met, however, then any intrabar price breakout is invalid and indicates that one should trade against the trend. The latter situation provides an ideal time to enter the option market in anticipation of a trend reversal."

So, let's say none of the four qualifiers were met to enter on a break down of a TD Demand line, but the bar closes below the line. The new bar opens. What happens? Do I open a position? It doesn't sound like it, from the above quote. It sounds almost like I should be reversing the other way. But when I do reverse? And if I do indeed open a breakout position, should I open on the next bar open (after the failed non-qualified intraday break)? If so, where does Demark say this?
Attached Image
  • #40
  • Aug 19, 2007 5:19pm Aug 19, 2007 5:19pm
Ok sorry, I have to bump this, because this is a really important aspect of TD Line qualified breakouts...

Notice the attached chart. The breakout bar was clearly not a qualified breakout, hence we would have faded and gone long there, or not entered at all. However, price continued to drop. Is this simply a case where TD Lines failed? I realize this will happen probably half the time, so it's okay if that's the case. But again, none of the intraday qualifiers were met. Does this mean it's okay to open a short position on the next bar (not an "intrabar entry," an entry on the OPEN of the bar), or should I consider the break disqualified and do nothing?

The whole thing that confuses me is that Demark calls these "intraday" qualifiers. Does that mean that after the bar closes below a demand line, or above a supply line, that we are allowed to open then? That's my whole question.
Attached Image
1 trader viewing now