| Below is based on the Book “Demark Indicators” by Jason Perl | ||||
| BUY | SELL | |||
| TD Buy Setup | TD Sell Setup | |||
| Duration | 9 price bars | 9 price bars | ||
| Signal | 9 consecutive, CLOSE < CLOSE 4 bars earlier | 9 consecutive, Close > Close 4 bars earlier | ||
| TDST Support | True LOW of last completed TD SELL Setup | TDST Resistance | True HIGH of last completed TD BUY Setup | |
| To Trade Setups: (see p. 13-14 | To Trade Setups: (see p. 16-17 | |||
| Perfection | LOW of 8 or 9 < LOW of 6 AND 7 | HIGH of 8 or 9 > HIGH of 6 and 7 | ||
| AND | AND | |||
| Trading | If no CLOSE’s of 1-9 < Support, then check proximity | If no CLOSE’s of 1-9 > Resistance, then check proximity | ||
| Proximity Check | CLOSE of 9 is in proximity to Support | CLOSE of 9 < Support + 0.236(True Range of current Setup). Note: this is my own definition. | CLOSE of 9 is in proximity to Resistance | CLOSE of 9 > Resistance – 0.236(True Range of current Setup) |
| Risk Level (Stop-Loss) | a)Find bar with Lowest LOW of Setup. b) Calc. True Range of that bar, and c) Subtract true range from that bar’s LOW | a)Find bar with Highest HIGH of Setup. b) Calc. True Range of that bar, and c) Add true range to that bar’s HIGH | ||
| Buy IF: | (Current Setup Resistance Level – 9 CLOSE) > 1.5 * (9 CLOSE – TD Risk Level) | Sell Short IF: | (9 CLOSE – Current Setup Support) > 1.5*(TD Risk Level – 9 CLOSE) | |
| Expected Return: | Price to rise toward Resistance (True High of Current Setup) | I’ve noted a response with 4 bars | Price to fall toward Support (True LOW of Current Setup) | I’ve noted a response with 4 bars |
| otherwise, continue to TD Countdown | otherwise, continue to TD Countdown | |||
| TD Buy Countdown | TD Sell Countdown | |||
| Reminder!! | Continue to Countdown ONLY if a CLOSE of the Setup was below Support – otherwise look to trade the Setup | Continue to Countdown ONLY if a CLOSE of the Setup was above Resistance – otherwise look to trade the Setup | ||
| Begin | Bar 9 of Setup | Bar 9 of Setup | ||
| Signal | 13 bars, each counted when CLOSE < LOW of 2 bars prior | 13 bars, each counted when CLOSE > HIGH of 2 bars prior | ||
| Cancellation | 1) price rallies and generates a SELL Setup; or 2) price rallies and posts a LOW above Resistance | p. 21 | 1) Price falls and generats a BUY Setup; or 2) Price falls and posts a HIGH below Support | |
| Recycling | If a TD Buy SETUP continues to 18 bars, then any PRIOR Countdown in same direction is Cancelled. | p. 22 | If a TD Sell SETUP continues to 18 bars, then any prior Countdown in same direction is Cancelled. | |
| Perfection | LOW of 13 < CLOSE of 8 (Countdown continues with ‘+’ until this is met. | HIGH of 13 > CLOSE of 8 (Countdown continues with a ‘+’ until this is met. | ||
| Risk Level (Stop Loss) | a)Find bar with Lowest LOW of Countdown (even if not a numbered bar). b) Calc. True Range of that bar, and c) Subtract true range from that bar’s LOW | p. 26 | a)Find bar with Highest HIGH of Countdown (even if not a numbered bar). b) Calc. True Range of that bar, and c) Add true range to that bar’s HIGH | p. 39 |
| Expected Return: | “meaningful response expected within 12 bars” | “meaningful response expected within 12 bars” | p. 40 |
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