The 20th Annual IFTA Conference - Sharm El-Shaikh

Quoting narafa

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Guido Riolo is the Head of Technical Analysis for Europe, Middle East and Africa for Bloomberg.

Guido Riolos' presentation was focused on TD Levels (Tom DeMarks' levels) and TD Sequential and TD Combo.

TD are counter-trend by nature and they are best emplyed to spot when the trend is about to stop being your friend.

Idetifying the trend is by looking for "directional momentum", for an uptrend, 9 consecutive bars of positive 4-bar momentum and for a downtrend, 9 consecutive bars of negative 4-bar momentum.

The phase of idetifying the trend is called the setup and bars are numbered and the completion of the setup triggers 3 important events:

1- A correction should start, two bars either side of the 9th bar
2- A line called TDST is generated
3- The second phase, CountDown, has a chance to commence

Corrections against the setups must be calculated off the range of the setup itself. Ideal situation is when Fibonacci retracements of the setup range and of the overall move cluster at the same level.

A useful concept applied to setups is the compressed setup. A buy setup can cover less space than the opposing sell setup. If 9 consecutive bars of negative momentum are easily undone by the first few bars of the opposite move, then the market is suggesting a greater conviction on the upside and vice versa.


Thanks,

Nader

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