Replies to post #10983 on 123Tom's TA study group

[oldmystic]

DeMark patterns are designed to indicate trend exhaustion. There are software programs which count the DeMark sequence but I prefer to count by eye. It's not difficult and after a while it goes quickly. The first phase entails 9 consecutive closes lower than the close 4 bars earlier. A price flip occurs on a close above the close 4 bars earlier. This price flip must occur within the first 4 bars of the completed pattern of 9. If price flip does not occur or even if it does and then price reverses and continues lower, the second phase ensues. The second phase requires 13 closes lower than the low 2 bars earlier. These do not have to be consecutive. The signals are more powerful on higher time frames. AVXL has completed bar 8 of 9 on a monthly chart. If October (bar 9) closes below $8.13 (bar 5) it will register 9 of 9. If this occurs and then November closes above $8.25 (August, bar 6), this will be a price flip and will be counted a bar 1 of a potential new monthly uptrend. We shall see. Failed counts have been annotated with a circle around the bar that failed. https://invst.ly/11la33

[sab63090]

Tom DeMark has been around for a very long time...i think from the 70s and worked for some very hard people to work for like Michael Steinhardt (hedge fund) and Goldman Sachs, etc....I normally just wait for a down count to 8 or 9 (oversold) or up count (overbought) normally never wait for completion at 13...you can Google them...