FREE FOREX STRATEGIES

#6 Tom DeMark Trend lines

This is a well know trend line breakout strategy by Tom DeMark.
The only difficulties traders had earlier were all about constantly drawing trend lines and calculating profit targets.

With a help of custom MT4 indicator this problem was solved.

Two variations of the same indicator:


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Edward,

I have to admit I have no idea how to use the TD Sequential :(. Any pointers? Thanks!

Alex Liu

No problem, Alex

I have to admit, I haven't used it too :)
But I have this topic and indicators in my archives, so I'll gladly share them with you and the rest of the audience. (Give me a day or two and I'll add a new strategy page with links and docs).

Regards,
Edward

Hi Edward

Thanks for your efforts :)

The last few days and weeks have been pretty flat and I cant get good usage of TD sequential it seems!

Alex Liu

Alex,
i trade the european and newyork session and i advice you strictly trade the 4 hour chart
Tope

hi edward,
i need explanation on how to determine buying and selling pressures after a trend line break.pls i'll appreciate if you could use charts in the explanation.thanks
Tope

Hi Tope,

Speaking about trend lines, for example, an uptrend line: while the line holds we say there is enough buying pressure to keep it intact. In other words, while buying pressure overpowers selling pressure, an uptrend line stays intact. Once powers shift, we get a broken trend line. At that point it is not known what buying/selling pressure lies ahead, until price meets the first support/resistance level, where a new "evaluation" is done.

I try to anticipate potential intensity of the breakout to some extent by looking at the angle of price as it approaches a trend line.

Example 1:

A strong buying pressure pushes price towards the trend line. If buyers can't be stopped at the line, they'll crush the doors and push forward.

Price and trendline breakout

Example 2:

There is not enough pressure from buyers to immediately challenge the trend line, but it is building slowly (at least some horisontal support level below the price holds). Presuming that support holds long enough, the trend line will soon be crawled over.

Price and trendline breakout

Now live example:

Quick break - quick advance vs sideways break and no reaction till price breaks out of its narrow horisontal channel. Next stop - at the next support level.

Price and trendline breakout

Summary: quick break - quick advance, slow break - slow advance.

Regards,
Edward

Hey Edward, how goes it. I am new to forex,but not to the world.I saw something
in these trendlines that could give me a fighting chance,and they definitely
have.They are the best thing that has happened to my demo trading.I will not get the big head just yet,but at least I am not crashing accounts every few
days.This Tom DeMark knows what is happining.Thanks for everything and know
that you have helped me very much. Execute tvyork(at)gmail.com

Hi Edward,
Thanks for the reply to my question on buying and selling pressures,i'll trade this technique alongside tomdemark trendlines.i'll give a comment by the end of this trading week on this technique.
Tope