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Tom Demark (TD) Moving Average
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singaporegal
Supreme |
25-Dec-2006 20:42
Yells: "Female TA nut" |
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Thanks for the explanation Daemon! Are you using this yourself? |
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Daemon
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25-Dec-2006 12:42
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yeah.. just stick to what usually works for you. This one's a little messy and tedious to chart and understand. Merry Xmas btw~ |
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iPunter
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25-Dec-2006 12:36
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There's only one shortest distance between two points... What's the point of deliberately complicating things by entertaining a lot of other 'indicators', especially indicatore that tell you yesterday's news?... :) |
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Daemon
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25-Dec-2006 12:17
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yeah.. just stick to what usually works for you. This one's a little messy and tedious to chart and understand. Merry Xmas btw~ |
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iPunter
Supreme |
25-Dec-2006 08:57
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giantlow... :) Yea... way to go, man! Nothing beats the virtue of simplicity, without the noisy bells and whistles... |
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giantlow
Master |
25-Dec-2006 03:07
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Wah. too cheem for me. i guess i'll just stick to my normal price and volume charts. hahaha |
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Daemon
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24-Dec-2006 21:46
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Hi Giantlow, this is what i understand of Thomas Demark's sequential countdown. It is a leading entry tool used to see a change in trend. So if u are doing a uptrend countdown, u are looking to sell, and vice versa. Demark's sequential countdown has 2 parts. A trend count of 9 with lookback of 4bars, and a countdown of 13 with a lookback of 2. The trend count of 9 needs to have 9 consecutive bars that closes higher(if it is a uptrend countdown) than 4 bars back. Meaning for each bar, look back 4bars and it must close higher than that. The countdown of 13 is the same rule, just that it is lookback 2 instead and need not be in consecutive together. The trigger for the buy/sell would be a close that's higher(if u are looking for a sell) or lower (if u are looking for a buy) that has a lookback of 2. Time stop should be around 10bars away with the market moving about 1.5 average range in your favour. With this there is also a 9-13-9 trend extension and a combo countdown along with his sequential countdown... which if u are interested you should explore his book: The new science of technical analysis. |
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singaporegal
Supreme |
24-Dec-2006 20:20
Yells: "Female TA nut" |
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I don't really understand it either. But my take is this - If the TD Moving Average is constructed out of the Standard Moving Average, then this indicator is still a lagging one. If you have found a set of TA or FA indicators that work for you consistently, my advise is just stick to them like glue! |
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giantlow
Master |
24-Dec-2006 17:10
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I dun realli understand how it works. Any comments from the gurus? |
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giantlow
Master |
24-Dec-2006 17:09
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My friend from the industry says the big boys are using this indicator. Tom Demark describes his TD Moving Average study as "a means of identifying logical locations to either exit a trade or to place stop loss orders." If the Moving Average of lows goes into effect, use the price level represented by the Moving Average to determine a place to exit the long position or to place a stop loss on a trade. If the Moving Average of highs goes into effect, use the price level represented by the Moving Average to spot a place to exit the short position or to place a stop loss on a trade. The plot of the Moving Average remains in force for a period of 4 bars or until the required conditions are no longer valid. Note that once the lowest low in X bars condition is no longer true, the plot continues for a period of 4 bars. Conversely, if the most recent high has achieved a value higher than the high of all previous 12 bars, then a 3 period Moving Average of the highs is calculated and plotted until either the condition is no longer true or for a period of 4 bars, whichever is less. |
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