DeMark Indicators (ADVANCED)

do u use 89 xma on all currecy pairs or just eu? just curious because i know many great traders that use 5 sma and 50 100 200 400 ema for gj but i've never heard of 89xma for that pair?... 62 magnet is another on gu i've heard of ...but 89 xma (i presume is same as ema?)is a new one to me.... for picking bottoms and tops i presume from your chart??? the gann hi lo auslanco indicator i believe is similar to this 89 xma as well.... ... i dont like all those lines on my chart personally but am interested to learn from you since you obviously know your stuff and if it helps you i figure maybe it can help me as well.... thanks for your help


Also, i have re-read demarks chapters on fibonacci and I am lost on one very important point....I do not understand how the magnet price is determined? Do u get it? he doenst explain it well at all...and i think it may be a crucial thing to understand in using fibs.... ???? again thanks for helping...

regards

d

Magnt price - I responded on your pm. Get back next week with more on that.

89 XMA is the same as EMA - exponential

89 is the only one I use and sparingly at that. It is only of use as an additional confirmation. But really what the actual length is matters very little to me. Some like 5, another 21, another 100 or 200. 89 is a fib number and I think it is best if you are going to use any MA and to stick to only one.

But moving averages are lagging whether they are simple, exponential, weighted, displaced, jthma, guppyized and a zillion other ways of being calculated and plotted with or without crossovers and all the colors of the rainbow.

If in the end a setup is in place its nice to see a MA there but it is not the key.

ben playing around with fibo magnet price....its pretty cool ...check it out


the red lines are the magnet which repels the price back into the trend after retracement.... in other words td says (i think) that most traders expect a full retrace from 0 to 100 or vice versa but the magent repels price back into original trend..... seems to work..so long as both 38 and 61.8 are breached then you can expect price to be drawn to magnet and possibly then be immediately repelled by magnet so long as there is not a bigger timeframe fib level overruniing the fib magnet in question....( a bigger magnet if u will).... is this your understanding as well? if so, is there an indicator for this? i doubt it but thought i'd ask..... anyway check the charts below it definitely has validity if u can spot them..... great way to jump back into the trend at a great entry price!

PS the 1 hour(second chart) shows a setup that worked perfectly(the thumbs down being the magnet repel) and the 15 m chart shows a possible setup if price retraces above 38 and 61 and then stops at magnet = short as trend will continue (at least so it appears)

It sems to me this is not exact science..... It seems that the reason the magnet price may work is that possibly stops and orders are placed at near these levels previously by the big institutions where the previous OPENS and CLOSEs OF THESE bottom/top bars and their next door neighbor bars are in this case i used the 4 hour open price of bottom bar and it worked very nicely

i wonder if anyone reads this tuff lol... maybe this will inspier others... here is another real time example of td magnet in action...today in a trading room i called out the price target of 213.82 as possible high for gj.... (pipsnipers.com),,,, i was using td magnet price as my projection for tp... I also was thinking of shorting if price failed to break that level...which it did and then i went short.... to 211.5 a nice revesal trade i think.... why wouldnt everyone want to study this? isnt this a great tool for your arsenal? anyway tom demark is a genius IMO so here is the trade for all interested

see chart.... notice once again that the open price of the swing high was the key, which is weird because tom demark talks mostly of the closing price? any insight would be appreciated.....

PS this only works once a 61 retarce has benne established (ie once price has retarced at least 61.8 and more it will go to at least the magnet and maybe more and if rejected by magnet goes back into the original trend hard!)

but even just as a general rul to be aware of when price approaches a previous swing high or low and doent make a full 100% retracement then the magent repels and reverses price it is a trmendous setup! good luck e1 and anyone with more knowledge or insight please contribut!

dagoods,

Just getting a chance to reply re magnet price. I think much of TD stuff should be used on 240min chart and above. And when using the magnet price as a possible reversal level in forex the open of a bar (even daily) most times is acceptable because it will be fractionally away, if not exact, to the previous closing price. But remember the magnet price (close or open) is only from the fib high anchor bar or fib anchor low bar.

Another technique I sometimes like to play with is draw my fib retracements from the lowest closing price (not lowest low) to the highest closing price (not highest high) in the trend.

I'm about to shut down this evening but I'll try to post some charts over the weekend. Have a good one.

Sun

hi mate... i hang your every word and wait for your charts and help looking forward to hearing more about magnet and your unique way of drawing fibs

Here is the NZDUSD daily with fibs drawn from close of the high bar down to close of the low bar. I left off 23.6 asd 38.6 since there wasn't much reaction. As you can see 50% / 61.8% / 78.6% all had some amount of retracement.

Although it might hard to see with the 50% level there is a 100% projection of the A-B move added to point C and even though price closed above the 61.8% the next 3 trading days were lower. And the market didn't quite reach the 78.6% (plus 161.8% Projection AB added C again) before falling the next week or two.

And I didn't draw it in but TDST of the buy setup extended across would line right above the one trading day that closed above the 61.8% level reinforcing the market downturn.

thanks sun i really do appreciate your time and effort.... very cool stuff there..... I am still trying to grapple with the magnet though b4 i even attempt to try fibs this way...do u have any examples of the magnet?

also, what does it cost for tradestaion with the td package? and does it come with training? maybe its worth it for me////

have u played around with td retracement fibs? seem to work great all by themselves and seem to be enough of a system in and of itself ala skunny style.... i am trying to keep myself trading simple systems and setups that i can apply mechanically,,, td trendlines are great but the td indicators i have all reapaint which stinks and they only draw td1s whcih really stinks too.... td trendlines are a system in and of themselves too and have been my bread and butter...combined with fib targets they are really great.... but would love to try some td seq for some longer term trades...and learn the magnet ... the other stuff like oscillators (rei etc. and td pivot points and td daily range etc i have not found useful... any advice is most appreciated

Here's a NZDUSD 240m showing a magnet price being hit (within 2/3 pips anyway) - yellow arrow by yellow dotted line. 8 bars later bottomed on dotted line, then went through.

Honestly I don't really use the magnet technique that often but when I do I only trade the first reaction. As with anything support/resistance related strategy the first time to an area is the strongest. With each successive move into an area the more likely it will give way.

TradeStation is free if you trade a certain volume per month -not sure the exact details because I don't trade with them and actually pay altogether $350/month. And that does not include 3rd party add-ons like TD. And the TD indicators I have, I bought from Tom DeMark's company years ago and they are no longer available except under lease from CQG and Bloomberg. Note also the indicators I have are code-locked so there isn't a way for me to copy them and give them to anyone else. Too bad, huh?

Not sure if you understand how REI works, I myself have to read over and over TD's stuff for it to really sink in. But REI needs to be counted how many bars it remains in oversold/overbought territory. You want to find mildly OS/OB periods (5 or less bars).

Here is the 240m chart again where I marked the REI for recent weeks. The 1st one with a 2 period was accurate. The next two, a 2 period and a 4 period weren't. The following two, both are 6 periods so they are ignored. But the best way to use REI is in combinations with his other techniques and to use qualifiers (4 different ones in the books) to filter out the erroneous signals like those 2 long ones that would be losers.

great stuff sun...thanks.... yeah the td qualifiers are really the key to his work it seems...whether it be trendline breaks or rei or fibonacci, if u fail to recognize the qualifiers u r in for some pain...lol... I think i will make it priority number 1 for me to memorize the qualifiers and practice applying them.... again i dont want to get too complicated so i am going to stick to trendlines td style combined with fibonacci td and skunny style (which is very similar IMO) with the magnet thrown in.... i have added some emas to my chart as well as they work well as qualifiers in a visual way for me.... 5sma (or 8 wma)along with 89 xma as you suggested... i have also been playing with 21 and 55 ema 100 and 200 ema and so far these have worked well for me for just a quick reference of visual representation of s/r which combined with td trendlines has worked very well for me..... this is still a work in progress for me so i really appreciate your insight.... REI is just too much for me to take on at this point, but maybe i will revisit it at some point down the road.....



but back to fibs and magnet.... I think you may want to check out magnet and td retracements a bit more..... on studying td retracement chapters in new science and day trading options..(its almost word for word in each book) it is really great technique, especially when you are looking at approaching td3 or td5 points of s/r..... if you pull a retracement fib from a td 5 high to a td 5 low properly as explained in his books, u can trade this with a very high degree of probability it seems to me (so far in my testing anyway).... u can take different trades from it. '


1. once the 61.8 retrace hurdle is cleared you WILL >90% retrace to at least the magnet price.... so you can trade from 61 to the magnet as trade number 1

2. if you close through the magnet and continue on past the 0/100 level you can trade to the 138 ext (skunny) this has been i would say >95% accurate, and probably closer to 100% with the only exception being if you run into a higher time frame fib or a point of true reversal

3. if you break the 138 you can trade to the 161 ext for a few pips

4. at this point if price seems to be exhausting u can start to look for a td seq setup or if price keeps going u pull more fibs and look at bigger level trendlines....

5. the other one i am working on is when price retraces to a 38 or 61 on a properly drawn td fib and then a pinbar and td point is made at exactly this level (38.2 or 61.8) price reverses back into the trend and a trade can be taken as that would be the end of the retrace....... i haven't tested this one enough but... this one is such a great risk reward trade with such a tight srop loss that it seems, so far anyway, that it could turn out to be a super powerful techinique

this is what i am trying to do....

I wish i could have someone code this for me so i didnt have to keep pulling new fibs and drawing new trendlines but it works.... its really, if you think about it very simply a more specific way of seeing PA

for example what is the magnet price really? its just a place where price faled to make a higher high /lower low..... price fails to go through the 0 or 100 and reverses for a bit...basic price action


anyway, if u have an comments or suggestions or charts or other techniques you think i should learn please keep the charts and advice coming!

regards

D

here is magnet and fibs once again in action on gj

commentary is welcome and appreciated as always

da,

You are on the right track using TD Lines since that keeps it simple and there are a lot more trading opportunities. TradeStation has an auto trendline indicator that I use. Wish I had TD's that has price target projections as well.

As far as TD retracements beyond the magnet price and 100% I look at 127.2% and 161.8% levels. Not 138.2% It's not much difference but it is what I learned from others and so I'm more used to.

Sun

check it out bud... i have found that the td trendline indicator can be set to mark td level 3 lines intead of 2 or 1 how awesome is that! now look at my chart!

I think 138.2 has been working quite well when drawing from swing high to swing low in accordance with td rules for drawing fibs..... so i will stick to it.... matter of fact 138.2 and 161,8 have wroked to the pip more times than not....so to me until i see otherwise i m going to stick to what works but i am sure there are a million fib systems that can be created and all can be great but i am stcking to Demarks rules for the time being but cheers mate

I'm starting to see what u mean about 127.2!!! and 161.8! this will be my next challenge and my next round of testing on my journey for perfection! thanks sun

Hi All,
Its been a month since last post, no more posts? How was the system? I am too late to read.
Hope hear from you all,
Thanks

if u r lucky maybe sun will be here sometime to answer your questions.....

Thanks for the reply, I just want to copy the indicators/templates which ones are newest n no bugs. I think I need them if they are good/work.
Thanks