Trends do not stop because of news; they stop because buying or selling pressure is completely exhausted. DeMark indicators mathematically count the steps leading up to this exhaustion point.
The second phase, a "countdown" of 13 bars, identifies the final exhaustion point. 2. TD Combo™
Standard trendline drawing is notoriously subjective; two traders can look at the same chart and draw entirely different lines. DeMark solved this by introducing and TD Demand Lines , which rely on strictly calculated pivot points called TD Points . Trends do not stop because of news; they
If you are looking to master Tom DeMark's methods, studying his official New Market Timing Techniques book is the most comprehensive way to understand the full suite of his indicators.
While the original formulas were written decades ago, you do not need to calculate these manually. Modern charting software natively supports or offers custom scripts for DeMARK indicators: If you are looking to master Tom DeMark's
: Consider looking into Tom DeMark's book, which comprehensively covers his methods. While not a paper, a book would offer in-depth insights into his strategies.
Every rule in the book is quantitative—based on exact price comparisons rather than subjective interpretations. 2. TD Sequential™: The 9-Count Indicator After a Buy Setup completes
Often confused with RSI, the DeMarker Indicator is a leading oscillator that measures the demand for an asset by comparing the most recent high and low with the previous period's high and low, rather than relying on closing prices. It oscillates between 0 and 1, with readings above 0.7 indicating overbought exhaustion and below 0.3 indicating oversold conditions. This indicator is particularly effective for "timing the entry at the exact moment of a price turn".
Once a 9-bar Setup completes, the market enters the Countdown phase. This phase measures larger-scale exhaustion and consists of 13 bars. Unlike the Setup, the Countdown bars .
After a Buy Setup completes, the system counts 13 bars where the close is less than or equal to the low two bars prior. These 13 bars do not need to be consecutive.