Tom DeMark

Hi all,

Can anyone post their experience with the Tom DeMark indicators? Did they work for you? Which combination of TDM indicators (or combination with traditional indicators) do you use?

Personally, I've been looking at TD-Sequential for reversals but that's about it.

RichieE

I backtested one of DeMark's indicators some time ago. From memory, I think it was it was the TD-Sequential. My conclusion: I wish I hadn't wasted my time. I could find no edge at all.

As I recall, it has some peculiar construction, with 13 bars of this, followed by X bars of that or something to that effect. I never read what the rationale for this anywhere and I could not work one out for myself.

IMHO, to adopt any element of TA in a trading strategy, there must be a good rationale ie logical reason that it may yield some sort of edge. The rationale might be decent statistical evidence. Alternatively, it might be that it passes the common sense test. Without either I wouldn't waste my time.

TD COMBO and TD SEQUENTIAL

I BOT "BREAKTHROUGHS IN TECHNICAL ANALYISIS, BY TOM KELLER.
Tom DeMark is one of the sections.
His (Tom's) description of his TD COMBO and TD SEQUENTIAL are hilariously ambiguous.
In the description setups the words used are: "that/this/prior" and it leaves enuf room for error. Like "who's on third" kinda stuff. It woulda been great to have simple used descriptions like: If (day) "a" low price is equal or lower than (day) "1" and "2" then proceed to next test. But instead of using specific language, the description uses words like "the close of that price bar must be lower than or equal to the price bar's low two price bars earlier"...yeah really.
I cant believe the publisher approved this kind of abiguity.

dcraig1 said:

I backtested one of DeMark's indicators some time ago. From memory, I think it was it was the TD-Sequential. My conclusion: I wish I hadn't wasted my time. I could find no edge at all.

As I recall, it has some peculiar construction, with 13 bars of this, followed by X bars of that or something to that effect. I never read what the rationale for this anywhere and I could not work one out for myself.

IMHO, to adopt any element of TA in a trading strategy, there must be a good rationale ie logical reason that it may yield some sort of edge. The rationale might be decent statistical evidence. Alternatively, it might be that it passes the common sense test. Without either I wouldn't waste my time.

Click to expand...

Hi All!

Does any one know how to use TD Sequentials accurately?

Td Sequentials Anyone?

Hi All!

Does any one know how to use TD Sequentials accurately for good profit?

:?:

RichieE said:

Hi all,

Can anyone post their experience with the Tom DeMark indicators? Did they work for you? Which combination of TDM indicators (or combination with traditional indicators) do you use?

Personally, I've been looking at TD-Sequential for reversals but that's about it.

RichieE

Click to expand...

Life is much easier than that!

What he is trying to do is to make a complicated rule out of something that can be seen with the naked eye over that period of time.

Split

I like some of TD indicators but don't use them myself. Reading his books is tough going and confusing at times. He has a lot to talk about and has given well to the industry.

I Have just started to look at this Indicator and am very interested in watching how it plays out will my other set ups. Any how you can start hear
Template 91 - rin TD all so look at the novicebear.com
Hope it helps

I use one of Tom De Marks indicators and must admit when I first started reading his stuff was left with, what is he going on about. But further reading it allowed me to understand how his mind works.

Anyhow the indicator I use is REI (Range Expansion Index) and the formula is as follows

IF ( ( (HIGH>=LOW[5] OR HIGH>=LOW[6]) AND (LOW<=HIGH[5] OR LOW<=HIGH[6]) ) OR ( (HIGH[2]>=CLOSE[7] OR HIGH[2]>=CLOSE[8]) AND (LOW[2]<=CLOSE[7] OR LOW[2]<=CLOSE[8]) ) ) THEN
VALUE = HIGH - HIGH[2] + LOW - LOW[2]
ABSVALUE =ABS(HIGH - HIGH[2]) + ABS(LOW- LOW[2])
ELSE
VALUE = 0
ABSVALUE = 0
ENDIF

RETURN SUMMATION[N](VALUE) / SUMMATION[n](ABSVALUE) AS "REI"

this indicator is used to assist in determing trends, how long they have to run etc.

All in all he is a hard man to understand but worth it at the end.

cheers

Peaceful_Warrior

Splitlink said:

Life is much easier than that!

What he is trying to do is to make a complicated rule out of something that can be seen with the naked eye over that period of time.

Split

Click to expand...

I downloaded DeMark indicator 2yrs back. I couldn't use because it is very difficult to understand. But last one week I tried to discover its potential. Now it appears to me the best indicator I ever seen. I only discovered that a breakout (red up arrow/or green down arrow on a 30m chart of majors) before the US session will give you 100 pips on an average and no loss. You will get 3/4 such break out. (do not enter in the middle of US session). I'm here to learn if it has any other feature.