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Tom demark Trendlines

  • #101
  • Jun 3, 2010 7:59am Jun 3, 2010 7:59am
Quoting simpleguy
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...
Simpleguy, if you please, will you post an example of scenario#2.
Vincit qui se vincit.
  • #102
  • Jun 3, 2010 10:32am Jun 3, 2010 10:32am
I don't have any saved trades on charts. The best way to describe it is if a bar closes below the line and opens with a gap up above the line. After 1 tic up you enter. This indicator is used in all markets so this happens often in the futures from what I understand. I have had it happen a few times for me.

Scenario 1 has shown to be most profitable followed by #3, and then 4. I have not had enough trades on 2 to make up my mind on it yet but I follow it mechanically.
A woman drove me to drink, and I forgot to thank her
  • #103
  • Edited 4:20am Jun 4, 2010 3:51am | Edited 4:20am
for your help. I am using a Demark Trendline indicator set to draw L3 trend lines. Do you you use L3 trendlines? Also, how do you cope when you are in a trade, and the trendline is redrawn? Do alter SL and TP?
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Vincit qui se vincit.
  • #104
  • Jun 4, 2010 2:22pm Jun 4, 2010 2:22pm
I use the L1 point lines, just had more success with that than others. what I do is if the line is redrawn after a confirmed break out I just trail it and play it really tight, especially when it gets down to the trend line again. Personally, if this happens and it confirms another valid break out I will enter another lot on top of the current trade.


The way I trade is to use the 123 system as described in the beginning of "the system II" thread, except I keep a much tighter SL on it. I also use "the force 5 min" system concept as bouncing off of TLs for reversals and the Demark indicator for a break out indicator.

remember, this isn't a system, just another indicator.

to the person that says he likes to draw his own lines, that's fine. This is fine too, as long as you understand what is happening and why.
A woman drove me to drink, and I forgot to thank her
  • #105
  • Jun 4, 2010 3:23pm Jun 4, 2010 3:23pm
Quoting simpleguy
I use the L1 point lines, just had more success with that than others. what I do is if the line is redrawn after a confirmed break out I just trail it and play it really tight, especially when it gets down to the trend line again. Personally, if this happens and it confirms another valid break out I will enter another lot on top of the current trade.


The way I trade is to use the 123 system as described in the beginning of "the system II" thread, except I keep a much tighter SL on it. I also use "the force 5 min" system concept as bouncing...
Thanks again.
Vincit qui se vincit.
  • #106
  • Jun 15, 2010 4:54pm Jun 15, 2010 4:54pm
Does anyone have a PDF file explaining what all the lines, the x and the arrows mean on the demark_trend_new indicator please, or can someone explain in detail how this one is/gets used. I've been watching it and trying to use it nowdays but the lines keep changing, I just don't know what to do in this situation, please tell me what LL1 (blue line), HL1(red line), HCL1 (red line) and LCL1(blue line) mean, there are also "channels" which form, for what I'm not sure, could it mean that if the price of new bar goes above the higher part of a red channel that it's the start of a long trade?
If there's a sudden new trend line that occurs could it mean that the current trend is coming to an end?

I'd appreciate ANYONE'S help who's using this indicator just to check trends
  • #107
  • Jun 15, 2010 11:14pm Jun 15, 2010 11:14pm
The trendlines could change every new candle. the horizontal lines are profit projections. I don't rely on them, start taking profits at less than 50% of the projection. they will move, don't worry about them. Basically Demark believed that the farther away from a line the price moves the more potential the trade has.

For example. lets say the price moves 50 pips above the lower TL, the profit lines will be 50 pips below the TL

Hope that helps, let me know if you need more.

Simple
A woman drove me to drink, and I forgot to thank her
  • #108
  • Jun 16, 2010 5:21am Jun 16, 2010 5:21am
Quoting simpleguy
The trendlines could change every new candle. the horizontal lines are profit projections. I don't rely on them, start taking profits at less than 50% of the projection. they will move, don't worry about them. Basically Demark believed that the farther away from a line the price moves the more potential the trade has.

For example. lets say the price moves 50 pips above the lower TL, the profit lines will be 50 pips below the TL

Hope that helps, let me know if you need more.

Simple

Thanks for wanting to help but, that doesn't really help me very much, I'm actually looking at these trend lines more in terms of diRECTION than in terms of where my profit would lie, would it be safe to assume that as soon as a candle crosses the top of a red line and a blue line already exists that i can go long until the wave crosses the bottom of the blue line again (then wait for another red line to go short again)?? Also, can you tell me what the use of arrows and crosses are, are the up/down arrows now buy/sell signals or what
  • #109
  • Jul 1, 2010 3:33pm Jul 1, 2010 3:33pm
today. Simpleguy, this does not look qualified to me. The comments are ambiguous. False break, yet, profit targets are given!?
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  • #110
  • Jul 1, 2010 5:09pm Jul 1, 2010 5:09pm
albeit late...signal candle close at 108.94. I bought at 109.32, 10 pips above H of signal candle. So far so good. I am new at Demark trading.
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  • #111
  • Jul 1, 2010 9:09pm Jul 1, 2010 9:09pm
My 4 hr chart has slightly different bars (which can happen with forex depending on the broker source for data):

My EU chart had a down close before TL breakout so it is valid.

Your EJ chart didn't have TD Point where the TL is drawn from so it doesn't look valid to me.

The indicators I have though are from Tom DeMark directly so as long as my data is correct I would presume there are right. MetaTrader I don't know.
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  • #112
  • Jul 1, 2010 9:32pm Jul 1, 2010 9:32pm
Quoting ayato
that's a daily trend line, look how on friday price hit 1.9865 and bounce off the line ... funny thing is a 50% fibo too.

Attachment
guys for this trendline trading i have noticed that on the 3rd bounce of a trendline(moveing upwards) if you buy 90% of the time the trade will make at least 50pips. This is for the gy. it should work for all pairs. proof of this is in the screenshot attached to the quoted post(should be like in the first few postings of this thread)
  • #113
  • Jul 1, 2010 9:34pm Jul 1, 2010 9:34pm
sorry. i forgot to add. when the price hits the trendline on the third bounce, buy!

have a look and backtest you will see this pattern aslo.

but great post, i really like trendline trading.

thanks dude!
  • #114
  • Edited 8:22am Jul 2, 2010 6:01am | Edited 8:22am
Quoting SunTrader
My 4 hr chart has slightly different bars (which can happen with forex depending on the broker source for data):

My EU chart had a down close before TL breakout so it is valid.

Your EJ chart didn't have TD Point where the TL is drawn from so it doesn't look valid to me.

The indicators I have though are from Tom DeMark directly so as long as my data is correct I would presume there are right. MetaTrader I don't know.
the points the Down TL was drawn from (red arrows) on the chart in post #109 . I am using L1 TLs. Perhaps I just don't understand, but I don't see a problem with the TL. What do you think?
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Vincit qui se vincit.
  • #115
  • Jul 2, 2010 10:01am Jul 2, 2010 10:01am
Quoting Pippopotamus
the points the Down TL was drawn from (red arrows) on the chart in post #109 . I am using L1 TLs. Perhaps I just don't understand, but I don't see a problem with the TL. What do you think?
Those TL's on new chart pic are correct.

But where you put the "not a fractal?" comment is not one since it doesn't have a higher high (it doesn't on my chart) or if it is higher it is only by a pip or two - can't tell from your chart pic.

Even if it does have a ever so slightly higher high pivot I wouldn't trade it myself. Maybe on a longer term timeframe - daily or higher.
  • #116
  • Edited 1:01pm Jul 2, 2010 12:12pm | Edited 1:01pm
Quoting SunTrader
Those TL's on new chart pic are correct.

But where you put the "not a fractal?" comment is not one since it doesn't have a higher high (it doesn't on my chart) or if it is higher it is only by a pip or two - can't tell from your chart pic.

Even if it does have a ever so slightly higher high pivot I wouldn't trade it myself. Maybe on a longer term timeframe - daily or higher.
The candle in question has a higher H than the preceding candle by a mere 3 pips(and by a clear margin a higher H than the succeeding candle). Technically, it is a L1 fractal. The ind. I use, which was set to draw L1 trendlines, drew a line from that point. This method appears very rational to me. I don't understand why it dosen't get more play here at FF. Do you you know if Demark has statistical/historical data for this method?
Vincit qui se vincit.
  • #117
  • Jul 2, 2010 1:51pm Jul 2, 2010 1:51pm
Quoting Pippopotamus
The candle in question has a higher H than the preceding candle by a mere 3 pips(and by a clear margin a higher H than the succeeding candle). Technically, it is a L1 fractal. The ind. I use, which was set to draw L1 trendlines, drew a line from that point. This method appears very rational to me. I don't understand why it dosen't get more play here at FF. Do you you know if Demark has statistical/historical data for this method?
Yeah but you have to look at it on a practical level that even with that candles having a HH by 3 pips it and the two previous candles had very similar highs so that really was a consolidation/hesitation zone and not a more truer pivot swing high area - price trending higher till it ops and reverses trending lower.

Tom DeMark has been trading and advising major players for 4 decades but whatever stats he has he's kept to himself and his clients. But I'm sure a believer for my own use and experience.
  • #118
  • Jul 3, 2010 1:06am Jul 3, 2010 1:06am
what broker you guys using my fxdd demo account charts dont seem to match yours.
  • #119
  • Jul 3, 2010 10:18am Jul 3, 2010 10:18am
Quoting john19r
what broker you guys using my fxdd demo account charts dont seem to match yours.
Mine doesn't match either, I use TradeStation. And that was my point about how some of those TL's are are drawn.
  • #120
  • Jul 5, 2010 2:39am Jul 5, 2010 2:39am
Does ANYONE have a decent exit trategy that can be used on this indi? At moment I'm trying the parabolic because this indi doesn't always SHOW a reversal in trend and before you know it, you've lost all your profits

Thanks in advance
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