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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Hi Edward,
Fantastic job on this site!
Regarding DeMark trendlines, the documents you have attached seem to suggest to construct trendlines using level 2 swingpoints (i.e, a valid level 2 swing low would have 2 bars to the right and the left higher than it). The Metatrader indicator however seems to be constructing level 1 trendlines. Would love to hear your opinion here. Obviously common sense dictates that a breakout of level 2 lines would be stronger than a level 1 line breakout. Is that so?
Chris

Hi Chris,

It is so. Level 2 would be much stronger, because the swing point proves to hold after 2 consecutive bars, instead of just one.
Also by knowing that regular Fractals by Bill Williams also use the same principle of "2 to the right and 2 to the left" we can conclude that a trendline breakout supported by yet another popular study - Fractals - will be noticed and traded by much greater number of traders around the world.

Regards,
Edward

P.S. ...although for my advanced strategy #5 I successfully continue to use level 1 method as well.

Hi Edward,
I am really acknowledging for the expertise of your site. I have a problem with the downloading of custom indicators MT4.They appear in programsfile/metatrader-alpari/experts/indicators but not in insert/indicators/custom.For the indicators of this site end by (.zip),it´s fine.For those end by (.mq4),it´s doesn´t work.I don´t know why.Please ,could you help me.Sorry for this,I´m not getting used to MT4 platform.Before, I only trade with fxtrade platform.I hope you understand me.
Regards,Moriah

Hi Moriah,

I guess you're confused a bit, since you mixed up it all.
To add a custom indicator to MT4, your steps should be next:

- copy IND-TD-DeMark-3-1_eng.mq4 file to programsfile/metatrader-alpari/experts/indicators
If you have a zipped file, you have to unzip it before copying .mq4 files to the above mentioned folder.
- close your MT4 platform if it was running. Restart the platform.
- on the platform, go to Menu above, where click on Insert -> Indicators -> Custom -> IND-TD-DeMark-3-1_eng

See also the scareenshot attached:

How to add .mq4 file to MT4

Hope this helps, otherwise let me know.

Regards,
Edward

Hi Edward,
Everything works now. thanks for your help.I appreciate a lot.
Regards,Moriah.

Hi Edward,

First of all my hat off to you for providing such a helpful site. Above two TD_Demark indicators are different from each other or do i have to add both of them?

I live in sydney so should I align my mt4 to GMT or any other timezone? Please advise.
Which time zone is best to calculate pivot points? Thanks in advance.

Regards
Dib

Hi Dib,

one indicator is enough. You can pick either one. They differ in style, but shouldn't differ in performance.

EST and GMT time zones are the best for calculating pivots.

Regards,
Edward

Hello Mr Edward

I have downloaded these indicator The are not the same witch is te one I should use my other qustion one this one Ind-TD-Demark-3-1_eng if I change fractal AsTD the trend lini is not the same when I change from tru to false or vice vesa
I am new at trading have been reading and trying a big big buntch of indicator
have been papaer trading for about 2 yaer with no positive succes and also if you know of any one that could mentor or willing to help me on 1to1 basic that would be be nice any way what I would like to know what are all those valus in the indicator
thanck you for your time from what I see on you forum you are one busy man ad verry pation dont know how you can do all what your doing to help every one
thanck you verry mutch

Réal Rondeau Québec Canada