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Tom demark Trendlines

  • #181
  • Aug 25, 2011 2:09pm Aug 25, 2011 2:09pm
Quoting Ipndasno
I've been using them for quite some time and eventually moved away from them and started to draw them manually for a semi - automated trading system.

I then found several Line traders EA out there, and tweaked Trendmeleaveme into iDRAW 1.4 and now I'm working on fully automation now.

Here is the Free version for the semi Auto system - http://www.pipinvestment.com/Menu/979

.... with the combination of demark trendlines and the Free iDRAW version, you will enjoy some freedom away from the desk.


Thanks mate, but it seems i could not get the free version. Anyway, i intend to enter not at the break of the trend line but one or two pips above the close of that candle. Will definately try 4hr time frame but execute trade on the 15min. Tried it this morning on the E/U and came with 10pips. Could have been more if i wasn't emotional. Have you had any success trading this?
  • #182
  • Edited 2:59pm Aug 28, 2011 2:58pm | Edited 2:59pm
Quoting simpleguy
Look up this guy, Jason Pearl, He wrote a book on Demark Indicators. I think he did a better job of describing how to use them than Demark did. Also remember, Demark said his indicators can be used on small time frames but thinks they work best on higher time frames, but I also think that is just a personal preference by him also.

good luck
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Thanks for the Jason Pearl tip. Tom DeMark is brilliant, imho. So brilliant that those of us with an average IQ, it would take the remainder of our lives to wade through his books.

I bought, and began reading his book, "The New Science of Technical Analysis". I made it all of the way to the end of chapter 2, before I decided I was in over my head. But for me, this was the meat and potatoes. What I mean by that, is he clearly explains how to use trend line breaks (TLB's) and how to calculate price objects based on these TLB's.

Using his methods, I have studied charts extensively over the past few years. btw imho; EA's are not worth my time. This opinion is not intended to annoy anyone so if it does I apologize in advance. Here's the deal on EA's. They are mechanical and lack intelligence and are unwavering in their approach. Their may, in fact, be a few EA's out there that can average a few percent annualized. I believe NOTHING will replace taking the time to personally read charts and achieve some level of understanding and taking advantage of Pure Price Action. I will show you how I use Tom DeMark, level 2 and above, TLB's & Price Projections (TDPP's).

But right now I need to take advantage of good weather and get some yard work done.

Tom DeMark On Youtube:
Inserted Video


If you always do what you always did,
you'll always get what you always got.
and you'll always feel what you've always felt.
  • #183
  • Aug 28, 2011 3:25pm Aug 28, 2011 3:25pm
The way that I figured out how to trade it was by printing out a chart, running through the rules and figured it out. They I looked at it and tried to figure out why I would or would not want to take the trade with the privilege of hindsight.

After I did that I went through trading simulator with it. This allowed me to understand this indicator well enough to understand it.

Good luck with your studies!
A woman drove me to drink, and I forgot to thank her
  • #184
  • Aug 28, 2011 5:02pm Aug 28, 2011 5:02pm
Tom would probably not be too pleased with me and the way I've modified how I apply his trend lines, although he might allow for the fact that I use this method primarily on 15m, 1 & 4hr charts instead of Daily.

I've looked at plenty of charts and after a while you start to see the same patterns repeated over and over. So I began trading live 2 weeks ago and am not disappointed at all. Wins, I won't mention. Losses were one Thursday & one Friday. Thursday I had just gotten into an EU TLB trade, it was a few pips in profit and Mr. Buffet announced $5 billion trade in B of A (Nick Name boa). Before I could double check to make sure I was looking at the correct chart, it was over, and I was stopped out for my 1st loss. Friday was an honest loss on the aud/usd, also during the US session.

This chart shows how I get my initial Price Projection figures, from which I determine a set of price targets. This is where I deviate from Tom's methods using a fractional approach.
Attached Image (click to enlarge)
Click to Enlarge Name: Price Projection2.png Size: 139 KB
  • #185
  • Aug 28, 2011 6:52pm Aug 28, 2011 6:52pm
Quoting diamonddbw
++++++++++++++++++++++++++++++++

Thanks for the Jason Pearl tip. Tom DeMark is brilliant, imho. So brilliant that those of us with an average IQ, it would take the remainder of our lives to wade through his books.

I bought, and began reading his book, "The New Science of Technical Analysis". I made it all of the way to the end of chapter 2, before I decided I was in over my head. But for me, this was the meat and potatoes. What I mean by that, is he clearly explains how to use trend line breaks (TLB's) and how to calculate price objects...
All technical analysis books are choosing those specific patterns that coincide with their theory, not mentioning the trades where the pattern aligned with the theory but then resulted in a failed trade. Murray math lines was a good example of this. Out of the thousands of stocks on the NYSE there will always be a few that coincide exactly with the harmonic levels. Murray then sent out emails only mentioning the closest match and price confirmation(winning trade), not mentioning the hundreds of other stocks where the trade would have failed.

Technical analysis books are money making scams, selling people a pipe dream. Those who know what to look for won't place that information in books.
  • #186
  • Aug 28, 2011 7:20pm Aug 28, 2011 7:20pm
Quoting StephanusR
All technical analysis books are choosing those specific patterns that coincide with their theory, not mentioning the trades where the pattern aligned with the theory but then resulted in a failed trade. Murray math lines was a good example of this. Out of the thousands of stocks on the NYSE there will always be a few that coincide exactly with the harmonic levels. Murray then sent out emails only mentioning the closest match and price confirmation(winning trade), not mentioning the hundreds of other stocks where the trade would have failed.

Technical...
++++++++++++++++

This is quite true some of the time. I get numerous emails daily from people telling me how their system will make me rich in no time. I rarely look at them anymore. They just go straight to junk.

Here's something else to consider. We all have different filters (perceptions provide by past experience) which can and do slant our methods of interpretation. So there is often much left out of, or misinterpreted, regarding the various methods presented. Cases in point. Many of the charts displayed in this thread demonstrate to me, that what Mr. DeMark has developed, and how thread contributors have understood it, in some cases, are miles apart. Being a male, I also realize that our gender is most guilty of withholding information (imho), not to be malicious, but because in our minds we think that because we understand something, that everyone else does too, so details are quite often left out.

I ave studied many methods from various sites, individuals, and videos. Some, I felt, were 100% crap. But on the whole, most had a nugget or two that help to build my trading knowledge. To these many helpful sources I owe a lot.
2¢
  • #187
  • Aug 28, 2011 7:34pm Aug 28, 2011 7:34pm
This 15m EU chart is one example of how I trade Mr. DeMark's trend line breaks.

This set up is unusual because it begins during the US session and concludes the next day during the FF/London session. Most of my 15m set ups occur beginning sometime late in the Asian session, to early in the US session on the same day.

I will only use Level 2, or higher Swing points. The level is determined by how many higher/lower candles are on either side of the swing. Level 2 has 2 higher/lower candles on either side. Level 3, has 3 on either side, etc.

Unlike Mr. DeMark I do not usually take consecutive swing points for my trend line purposes with the exception of Daily & 4hr charts. After reviewing hundreds of charts, mostly 15m, I've seen how consecutive swings cost money on lower level time frames.

The attachments show my basic set up. I will not take 15m trades with less than a 32 pip TDPP (Tom DeMark Price Projection) because my entry is usually 6 pips beyond the TLB.

Here's why; I have levels at which I begin taking profit that would make price projection numbers less than 32 not worthwhile.

Profit Targets:
38% Level - I close 25% of my position.
50% Level - 50% of my position

My current stats show that a high number of trades reach at least 80% of the TDPP. So my remaining positions I hold onto an begin closing at 80% and 100% of the price projection. I will usually leave 5 or 10% trailing in the case of a larger move. Sometimes that small position will add up to a big profit. Not often, but it's fun to ride when it does.

I use the Fib lines for profit targets, they are drawn from the trend line break of the candle that is used for entry. On this example, 2 candles actually broke through the trend line, but did not travel to meet my criteria of 6 pips beyond the trend line breach.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Picture 2.png Size: 69 KB
Click to Enlarge Name: Picture 3.png Size: 41 KB
  • #188
  • Aug 28, 2011 7:47pm Aug 28, 2011 7:47pm
Quoting StephanusR
All technical analysis books .............
Absolute statements in trading are worth ...... absolutely nothing.
  • #189
  • Aug 28, 2011 8:28pm Aug 28, 2011 8:28pm
Quoting SunTrader
Absolute statements in trading are worth ...... absolutely nothing.
++++++++++++++
Absolutely, er, ah.. probably
  • #190
  • Aug 29, 2011 1:43am Aug 29, 2011 1:43am
Quoting diamonddbw
++++++++++++++
Absolutely, er, ah.. probably

Good to have someone who understands DeMark on this side, Hope you'll share more of your trading experience with us Diamonddbw. And i truely wish you were trading the London open.
All the best
  • #191
  • Aug 29, 2011 6:04am Aug 29, 2011 6:04am
Quoting Adeleke
Thanks mate, but it seems i could not get the free version. Anyway, i intend to enter not at the break of the trend line but one or two pips above the close of that candle. Will definately try 4hr time frame but execute trade on the 15min. Tried it this morning on the E/U and came with 10pips. Could have been more if i wasn't emotional. Have you had any success trading this?
send an email to [email protected] and you will get an autoresponsder with download link.

As far as waiting for a CLoseD bar, no I do not do this.
  • #192
  • Edited 6:43pm Aug 29, 2011 9:54am | Edited 6:43pm
Quoting Adeleke
Good to have someone who understands DeMark on this side, Hope you'll share more of your trading experience with us Diamonddbw. And i truely wish you were trading the London open.
All the best
++++++++++++++++++
I do have a pretty good handle on the basic operation of trend line breaks and price projections, however after reading the thread, I can guarantee that SunTrader and Simpleguy have much broader and deeper knowledge of what Mr. DeMark is teaching than I do.

Chart analysis on trend line breaks is something I have done extensively and this has helped me come to some conclusions which do serve me well. One major thing that this analysis has helped me with is identifying price action patterns. One of my favorites is rapid price movement. I'll post one of those charts later.

Quite often I am awake for the 1st 2-3 hours of the FF/London session. If you are on skype send me a pm and we can set a meeting.
Darryl
  • #193
  • Aug 29, 2011 1:33pm Aug 29, 2011 1:33pm
Hi Darryl,

Have just send you a message.
  • #194
  • Aug 29, 2011 6:59pm Aug 29, 2011 6:59pm
Quoting diamonddbw
++++++++++++++++++
I do have a pretty good handle on the basic operation of trend line breaks and price projections, however after reading the thread, I can guarantee that SunTrader and Simpleguy have much broader and deeper knowledge of what Mr. DeMark is teaching than I do.

Chart analysis on trend line breaks is something I have done extensively and this has helped me come to some conclusions which do serve me well. One major thing that this analysis has helped me with is identifying price action patterns. One of my favorites is rapid price movement....



Still trying to download skype(Been at it all day). sometimes my ignorance a maize me. Will contact you immediately i get it done.Thanks and Good night.
  • #195
  • Aug 30, 2011 4:46am Aug 30, 2011 4:46am
Today's E/U Pair looks fairly easy now with the aid of foresight. But when i took my sell this morning at 1.44809, I felt everything about this trade was wrong.The tendline was at 1.44773 and the previous trendline break happened an hour or so earlier. Well, must have been lucky cos i got my first TP1 for 20pips and TP2 for 50 pips. Will check back during the NY session for some thing else

Finally got the skype downloaded

Adeleke80
  • #196
  • Aug 30, 2011 8:26am Aug 30, 2011 8:26am
Quoting Adeleke
Today's E/U Pair looks fairly easy now with the aid of foresight. But when i took my sell this morning at 1.44809, I felt everything about this trade was wrong.The tendline was at 1.44773 and the previous trendline break happened an hour or so earlier. Well, must have been lucky cos i got my first TP1 for 20pips and TP2 for 50 pips. Will check back during the NY session for some thing else

Finally got the skype downloaded

Adeleke80
Adeleke,

Great trade! yes it's that easy. The most important thing is that you kept a portion on for the +50 and got a nice big fat tail. Personally the way I look at it one decent or good trade can wipe out all of my little "failing trades" for a week or two!

Something for you to look at. if you were online during that time, look at the lines on the 1hr chart. it would have gotten you in 20 pips earlier and told you to run with it for a TP 2 of 100 pips maybe. (this is being said looking in hindsight and not knowing your personal trading style so take it with a grain of salt. Just something for you to think about) My real world work is messing with me, I'll be back trading next week again. It's killing me not being able to really do it. I need my trading fix!

Think you did great, keep it up!

Simple
A woman drove me to drink, and I forgot to thank her
  • #197
  • Aug 30, 2011 12:32pm Aug 30, 2011 12:32pm
Quoting simpleguy
Adeleke,

Great trade! yes it's that easy. The most important thing is that you kept a portion on for the +50 and got a nice big fat tail. Personally the way I look at it one decent or good trade can wipe out all of my little "failing trades" for a week or two!

Something for you to look at. if you were online during that time, look at the lines on the 1hr chart. it would have gotten you in 20 pips earlier and told you to run with it for a TP 2 of 100 pips maybe. ([i]this is being said looking in hindsight and not knowing your personal trading...
+++++++++++++++
Hi SG. I'm guessing that you do not enter the trade until the close of the candle in the TF your trade is based in. Is that correct?

But my most important question is where would your stop loss have been? I see price retraced 30 pips from the 1.4476 entry. PP was about 60.
Thanks,
Darryl
  • #198
  • Aug 30, 2011 8:59pm Aug 30, 2011 8:59pm
Quoting diamonddbw
+++++++++++++++
Hi SG. I'm guessing that you do not enter the trade until the close of the candle in the TF your trade is based in. Is that correct?

But my most important question is where would your stop loss have been? I see price retraced 30 pips from the 1.4476 entry. PP was about 60.
Thanks,
Darryl
First a Disclaimer: I was not on for this trade. I was just trying to show another potential entry that could have worked great.

I will determine how I enter the trade based on momentum. If I feel we have great momentum I will enter on break. If low momentum, I will enter on close. If it's a trade i just don't like I'll wait for a pull back and then see if it has gained momentum.

I might have been taken out on this trade. My MM in a trade is to move my SL to BE + 2 or 3 after we have a move . then I wait for price to stall or basically do anything that just doesn't sit well with me and I take half off. Now it's just a waiting game, either it will progress towards the further TP levels. While price moves forward I look for more opportunities to add to the position.

In a situation like today where it could come back and take out my SL, i would look at it and decide if i would be interested in take a trade for a second time in that area. I generally will play it as S/R like this one.
A woman drove me to drink, and I forgot to thank her
  • #199
  • Aug 31, 2011 1:35am Aug 31, 2011 1:35am
Hi gentlemen, its about 30min after the London open and am looking at E/U 15mins chart. the trendlines was just broken upwards at 1.44349 but also the price projection has been breached. Think i'll wait for a pull back then let Demark decide. Cheers
  • #200
  • Aug 31, 2011 1:56am Aug 31, 2011 1:56am
Quoting Adeleke
Hi gentlemen, its about 30min after the London open and am looking at E/U 15mins chart. the trendlines was just broken upwards at 1.44349 but also the price projection has been breached. Think i'll wait for a pull back then let Demark decide. Cheers
++++++++++++++++++++++++++++++++
Hi Adeleke. Don't like euro long. I don't like it short either. I do, however am looking for a possibility of an abc continuation pattern down.

btw, I'm on skype now. Where are you?
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