DeMark Indicators

Mr Perl did an outstanding job of explaining The DeMark indicators. I have read all three books written by Tom DeMark and Mr Perl did an outstanding job of showing the practical use of the DeMark indicators. If you want to do a better job of trading the markets and believe in systems then this book is for you.

Although this book does not simply list formulas for all of the indicators it describes, it is fairly simple to transfer the guidelines listed for a signal to develop into an equation-based trading strategy; anyone that says differently probably has not read the book, but simply glanced over the requirements listed for each indicator. For instance, the simplest indicator in the book states that for a TD Price Flip to occur in an upward trend, the close of the current bar must be lower than the close four bars earlier. (As seen on page 2 of the sample pages.) To put this into an equation is simple: if (bar[0][close] This book exhaustively details various entry strategies, while only providing suggestions for exit strategies; however, if you consider the aggressiveness of the indicator and apply it proportionally to your exit strategy, it is fairly simple to determine stop-loss and limit levels. Additionally, if you are able to combine all of the indicators listed in the book, you should be able to formulate a fairly solid trading strategy. I will post another review in several weeks listing various trading results using these indicators.

This book provides the clearest exposition of Tom Demark's work that I have seen, explaining both how to implement the indicators and giving suggestions for interpreting them as a discretionary trader or as part of a mechnical system. It is written from the perspective of a practitioner and targets that audience - Jason has been extremely generous in disclosing many tricks of the trade in applying the indicators that one otherwise could only learn painfully from watching several years of market behaviour under different regimes. For example, he explains how a trend-follower can use TD Setups in combination with TDST lines - an idea not explained elsewhere. Jason Perl is the expert on the application of TD Wave (Tom Demark's rigorous variation of Elliott Wave), and the explanation of how to use this tool in combination with other indicators is on its own worth a multiple of the price of the book.

I've been struggling for weeks now to recreate many of Demark's indicators for the Ninjatrader platform in C# - relying soley on the original explainations in Tom Demark's book. There are a lot of very detailed logic rules for these indicators that , if you blink, you'll miss a step in the procedure. Jason Perl's book is exactly what I have been looking for. He breaks down each indicator in a top down pseudo code step by step format that makes understanding and code translation a breeze. There are also numerous Q & A's that I found extremely insighful. HIGHLY RECOMMENDED!