#6 Tom DeMark Trend lines
Submitted by Edward Revy on June 25, 2009 - 15:48.
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 how to calculate selling pressure? Is it prev bar close - prev bar high + close ?
Thx
Stanislaw Z
Hi,
I think it is great method and very profitable if you filter the false signals, I'd like to ask does this set up qualify for up breakout? I think it does but im not 100% sure
C:\Users\ghgg\Pictures\eu breakout.gif
Thx
Stanislaw Z
Thank for the answer Peter :-))
Regards,
Eddy Mustika
Eddy,
what you could do is scale out, meaning taking profit for half your position, move your stop loss for the other half to break even (minimally) or slightly below the last pivot (low for lonh trades or high for short trades).
What I often do is use the 1.272 fibonacci extension for profit targets.
Regards,
Peter (a.k.a. Dutchie :-))
Hi Mr. Edward,
Thanks for this helpful site. I traded with this indicator for 5 days and made about 700 pips. I wait for the breakout, place TP at the Upper/Lower limit line, SL is set 1/3 of the TP (3:1) risk-reward ratio. TF daily.
My question is, what to do after the price reached the TP? because the trend line didn't change and it didn't show the next target nor the breakout lines.
Regards,
Eddy Mustika
Edward,
Just want to say that after reading several books on DeMark indicators, I don't think you have to wait for the close of the candle... The violation of the line is the signal to enter on an intrabar break if one of the qualifier is met and the candle after you have to look if there is one of the dis-qualifier that tells you to exit...
(See page 93 and 94 of Demark Indicators written by Jason Perl
Tom Demark TD indicator 3 is excellent, I have been very successful.
They are a marvel of indicadores. Definitivamente TOM DeMark is a genius of forex.
Thank you very much,
Rudolph
OCO = Order cancels order.
Not all platforms have OCO orders option. MT4, for example, doesn't.
Thomas
oco?
Go with trend
Draw a trend line on any pair and any time frame chart.
1.Wait till the the bar close above trend line for up trend and below for down trend.
2.If current Rate is above trend line give Buy order and if it is below trend line give sell order with stop loss at trend line.
3.Trail the stop loss as per trend line.
4.If any order close in Stop Loss give OCO order buy @ 20 Pips above trend line and sell @ 20 Pips below trend line with Stop Loss at trend line.
5.Avoid Range bound pair. Select another ranging pair for maximum profit.
Regards,
M.S.Deshmukh.
Thank you KFX,
I expect some forward-backward testing feedback from our visitors. While I do initial tests, they are insufficient for a long term reports, besides I often include my own bits of tests and ideas during the process. That's just the way I can keep up with the strategies flow on the site.
Kind regards,
Edward
Hi there Edward and all of you!
Good job on the site you have done!
Have been looking this strategy in action and looks potential winner though.
Beside good impressions shared - is there anyone traded this style long enough to provide data - profitability, drawdowns, etc.
Thanks to all.
Live well!
KFX Industry
Hi Andris,
Certainly try MT4.
I use both platforms, where MT4 helps me to analyse the market with all different kinds of custom indicators which are not available on FXTrade.
Its a whole new world of indicators, which you'll be overwhelmed and excited with once you start using MT4.
Happy trading and exploring!
Edward
Hi Edward,
Do you still trade with Oanda, or you completely switched to MT4 ?
As you have now big experience trading both platforms, which one you would recommend ???
I'm still with Oanda but thinking about to try MT4
Andris
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