Tom demark Trendlines

Everyone has losses but the traders that last are the ones who have no problem taking a loss. It is all a part of the business of trading.

On my chart I have added some comments. I have a new much bigger monitor so I hope I don't blow up the screen too much with the resolution I use.

I can see why you exited. We all do it for fear of losing what little profit we have or turning an even trade into a loser but to get the big winners we sometimes have to take the chance.

Better luck the next time or I should say better execution.

(Double-Click the chart image for expanded view)

Thanks man your chart look so clean

Yeah thanks. I just got my charts finally the way I want them.

And to think it is on my brand new big-azz 28" monitor.

good indicator

use it on daily

Nothing on the daily for EU but on H4 I see this following for next week:

markdhr,

My reply to your email is I basically trade TD Trendlines on reversals keying off of TD SetUp, Sequential or Combo as well as sometimes using TD Wave to identify Elliott Wave counts. And the only thing to do with failures is always, always use a stop.

Here is a recent trade where 2 different TD Demand Trendlines (Level 3)were broken and targets hit. Wish they all worked out this way.

HTH

SunTrader

Hi I have a problem wt the scale of the chart using mt4.
when i draw a TL on the Weekly for the primary direction and zooming into the d1 for entry. Often times i find the D1 scale for the TL is way off and am not sure if the TL needs to be adjusted to "fit" the D1.

Obj is to trade the overall direction of the Weekly.

Whats your take guys?

Pardon my ignorance on this topic, but what is the purpose of the "HORIZONTAL" line in the indicator??? The TD Indicator that is.



SUNTRADER - I see Tradestation still does not have the "outline candles" after all these years. It used to drive me nutz.

Thanks in advance for an help with the horizontal thing.

clam

I'm going to use the charts in post 80 clam. I assume they are the horizontal lines you are speaking about. Demark believes for every action there is an opposite action. Those lines are the projections where the price should go if it is an acceptable break. that is determined by how far away from the TL it goes (opposite direction of break) is how far he believes price will move in the other direction. I personally start to aggressively take profit at about half of that. But to be honest, cutting my trades too quick is the one area I really need to work on.

Hope this helps.

this is a good triangle breakout technique........

ok i need to emphasise something here......we know the entry, but how do we plan our stops and profit taking?

Hi Guys,

Does anybody here had TD Wave indicator for MT4, I'm searching for it but nobody seems to have a MT4 version of it.

Hope that one of you can share it.

Cheers

Personally how I do it is once I get to +10 I move to BE plus 2 then I just play fractals on the way to 50% target. Once I get to 50% I start getting ready to cut my load in half at my first thought things might not go my way. I trade really tight, this keeps me sane, but find what works for you.

for me, i am trying a risk to reward ratio of 2:1

this way, i can afford to lose 5-6 trades in 10 trades and still profit.

I am planning a set and forget technique. Think is the best way.

I feel that we should just stick to 2 pairs the most, this way, we can really track the performance of this technique. I am tracking eur/usd and gbp/usd for this technique. Just got a 90pips profit from gbp/usd break.

if that is what you want to do, go ahead, it works. Just enter a trade and use one of the trade management EAs you can find on here. when I use one, I use Steve H's. Study it first and good luck

Thanks for the reply. I understand the TP lines, I thought I saw some horizontal lines in the charts posted. Must have been something else on the charts that are not part of the indicator. Appeciate it.

This indicator is abit one-sided.........i realise the trendlines changes after awhile......is not really a gd way to judge on how to enter a trade.....i think the best indicator is human himself drawing the lines......i could make 3-5k pips a year....so i just stick to it....


another source of income i got was to play penny stocks.

those stocks with value of 0.005 that rises 100% in one day. With capital of 5k, i could make 20-30k a year easily.

When you are talking about the breakouts (up or down) must the prior crossing candlestick be the oposite of the direction of the breakout? Does it occur with the candlesticks just driving straight in one direction where as the next candlestick is alway exceeding the previous candlestick in the direction of the breakout (up or down)? (i have seen this happen on several occurances)

Also, what should one expect when the TD indicator repaints itself in the middle of the breakout. That has occured to me several times. Should one exit a position if that occurs before the TD profit bar is reached from the first TD indicator?

Lastly, can someone explain this breakout explaination alittle more clearer? I am having trouble following the explainations.

Thanks.

Ditto on the above. I didn't fully understand the qualifiers from post #1, especially the ones about "pressure." Maybe a chart diagramming each qualifier?

Edit:
Found a pdf through google that explains things... looks like post #26 has the same pdf.

I just watched a small breakout obey a TD profit extension perfectly, so I'll be keeping an eye on this setup.

Demark Trend Lines
The goal of this system is to identify break outs according to a very rigid mechanical system. I use an indicator that will automatically plot the TD Lines to the first magnitude, I then monitor for TD Line breaks. I will trade a TD line break if these criteria are met. I will only trade this in the direction of the major trend for anything that is 1hr or less. To determine the major trend I usually go up one or two time frames. If I’m trading on the 1 hour charts I look for the trend on the 4 hr and daily charts. If I’m trading the daily, I go to the weekly charts to look for the trend. If I can’t easily see the trend is strong I cut my lot size in half. If market is ranging I will only trade it if the range is greater than 150 pips.
Scenarios 1-3 are time tested by many who have used this system and I have found them very reliable in my testing. Scenario 4 is something that I’m playing with. Over the last six months of testing and doing this system I have found that I have been successful over 70% of the time with a better than a 1:1 risk to Reward.
Scenario 1:
X = current candle
X-1 = previous candle
X-2 = 2 candles before current candle
For a Long:
If the close of the previous candle (X-1) is lower than the close of the bar two previous of the current bar (X-2) the break out is valid.
If X-1 is lower than X-2 then it is a valid break out.

For a short:
If the close of X-1 is higher than X-2 then the chances are higher that the breakout will continue.

Scenario 2:
The market opens on the other side of the TL, it gaps in the direction of the breakout. After one tick in the direction of the breakout execute order.

Scenario 3:
For a short: calculate the difference between X-1 close and the greater of A) that bar’s high, or B) the previous bar’s close. Subtract that value from the close of X-1 and if that number is above the TL, you may short an intraday bar.

Scenario 4:
This one is not from the Demark or Pearl book. I have been playing with this to see how it works. On a break of the trend line that does not meet the previous three scenarios I enter the trade at half of what I normally enter a trade. I get out of the trade very quickly, still working on.