#6 Tom DeMark Trend lines

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 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

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 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.

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.

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.

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

Regards,
Edward

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

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

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

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

Edward,

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

Alex Liu

Thanks a lot Edward!

Have you used this profitably?

Alex Liu

I'm quite convinced there are predators out there specifically targeting this breakout pattern and making a contrary trade judging by the heavy retracements on trendline breaks in the last few days. Got burnt a few times. Be especially careful of stochastic on multiple timeframes don't look overbought/sold by the time the trendline is broken. And definitely do not get in if the candle that broke the line came all the way from the other trendline!

Alex Liu

Dear Tope

What markets hours did you play?

Thanks

Alex Liu

Thank you, guys!

Alex, here is the indicator, hopefully this is the one you were looking for:

TD_Sequential.mq4

Regards,
Edward

Geez! i have not used any indicator/strategy that works as consistent as Tom Demarks trend lines.Edward, your website is the best forex website i have come across in my 3 years of trading.Thumbs up bro...keep the good work up.As i type this i am on a trade with a 70pip profit.The strategy has over 95% win probability if you strictly follow the rules

Regards,
Tope Ijibadejo

Hi Edward,

Any chance we can find an accurate TD Sequential indicator? My own search of the net has been fruitless!

Thanks!

Alex Liu