“Long a secret weapon for the hedge-fund elite,” saysTrader Monthly, the DeMark Indicators are now used by morethan 35,000 traders. This bookprovides an easy-to-follow system for using the indicators toidentify market turns as they happen.Author Jason Perl gives a concise introduction to thirty-nine ofthe DeMark Indicators, and then shows how to combine the indicatorsand time frames to achieve a higher probability of tradingsuccess. Thomas R. DeMark, the creator of the DeMark Indicators and one ofthe most well-respected practitioners of technical analysis wrotethe Foreword to this book. This is the second book in the Bloomberg Market Essentials™:Technical Analysis series, which covers the key elements of themost widely used technical analysis tools. Silver Medal Winner, Investing Category, Axiom Business BookAwards (2009)Winner: Book Series Cover Design, The Bookbinders Guild of NewYork/2009 New York Book Show Awards
About the Author
Jason Perl joined the Multi-Asset Sales Team at UBS inJune 2009 to identify turning points in markets for the Bank'slargest clients. He advises CIO's and Heads of Trading at macrohedge and sovereign wealth funds as well as tactical assetallocation teams on market timing, using the DeMark indicatorsexclusively. Previously he was Global Head of Fixed Income,Currencies and Commodities Technical Strategy at UBS. He joined thegroup in 2000 and ran it from 2004-2009. Jason and his teamprovided both short-term and medium-term trading strategies tocentral banks, hedge funds, institutional investors and wealthmanagers around the world as well as general and specialisteducational technical analysis training.
Prior to joining UBS, he was an independent consultant advisingproprietary desks and hedge funds on short-term trading strategiesas well as helping institutional investors with trading systemdesign and development. He was also a technical strategy adviser toa number of large financial data vendors and a contributing editorfor Futures & Options World, FX & MM, Petroleum Argos andthe International Petroleum Exchange's (IPE), Pipeline Magazine.Jason's area of technical expertise is the DeMark indicators, whichhe has been using for the past nineteen years.
A portion of the proceeds received by the author for thisbook goes to the Robin Hood Foundation. Robin Hood changes fatesand saves lives in New York City by applying investment principlesto charitable giving and supporting the most effectivepoverty-fighting programs in all five boroughs of New York City.For more information, go to: www.robinhood.org
Table of Contents
Foreword (Tom DeMark).
About DeMark Indicator Trademarks.
1 TD Sequential: Defining the Trend and IdentifyingExhaustion Points.
Interruption of a TD Buy Setup.
Completion of the First Phase of TD Sequential.
TD Sell Setup.
Using TDST Levels to Determine the Underlying Trend Bias.
TD Sequential vs. More Conventional Momentum Indicators.
TD Buy Setup "Perfection".
Trading a TD Buy Setup.
Trading a TD Sell Setup.
TD Setup vs. TD Sequential Countdown.
TD Buy Countdown Cancellation.
TD Buy Countdown Cancellation and Recycle Qualifiers.
TD Buy Countdown Recycle Qualifier.
Entering a Long Position.
Alternative Strategy for Entering a Long Position.
TD Buy Termination Count.
Frequently Asked Questions.
TD Sell Countdown.
TD Sell Countdown Cancellation.
TD Sell Countdown Cancellation and Recycle Qualifiers.
Alternative Strategy for Entering a Short Position.
TD Sell Termination Count.
Frequently Asked Questions.
Combining Time Frames for Additional Confidence.
Frequently Asked Questions about TD Sequential.
TD Sequential: Recommended Settings.
TD Aggressive Sequential.
2 TD Combo.
TD Combo Buy Setup.
Differences in Buy Countdown: TD Combo vs. TD Sequential.
TD Combo Buy Countdown.
TD Combo Version I: Recommended Settings.
3 TD D-Wave.
The Underlying Elliott Wave Principle.
Elliott Wave Basics.
DeMark's Mechanized Version of Elliott Wave.
The Time Aspect of the TD D-Wave Requirements.
Calculating TD D-Wave Projections.
The Ultimate Targets for TD D-Waves 5 and C.
Bear Market Price Projections.
TD D-Wave Frequently Asked Questions.
TD D-Wave: Recommended Settings.
4 TD Lines.
The Three TD Demand Line Qualifiers.
Calculating the Objective for a TD Demand Line Break.
TD Supply Line Qualifiers.
TD Lines: Recommended Settings.
5 TD Retracements.
TD Relative Retracement: Recommended Settings.
Recommended Settings for TD Absolute Retracement.
6 TD Trend Factor and TD Propulsion.
TD Trend Factor.
Frequently Asked Questions.
TD Trend Factor – Recommended Settings.
TD Propulsion: Recommended Settings.
7 TD Oscillators.
TD Range Expansion Index (TD REI).
TD REI: Recommended Settings.
TD DeMarker I and TD DeMarker II.
TD DeMarker I: Recommended Settings.
TD DeMarker II: Recommended Settings.
TD Pressure: Recommended Settings.
TD Rate of Change (TD ROC).
TD ROC: Recommended Settings.
TD Alignment: Recommended Settings.
8 TD Moving Averages.
TD Moving Average I: Recommended Settings.
9 TD Range Projection, TD Range Expansion Breakout, and TDChannels.
TD Range Projection.
TD Range Expansion Breakout (TD REBO).
10 Short-Term Indicators: TD Differential, TD ReverseDifferential, and TD Anti-Differential.
TD Reverse Differential.
TD Anti-Differential Up Arrow.
TD Anti-Differential Down Arrow.
11 TD Waldo Patterns.
12 Putting It All Together.
13 Learning the DeMark Indicators.
What People are Saying About This
“Having observed his market calls real time over the years, Ican say that Jason Perl’s application of the DeMarkIndicators distinguishes his work from industry peers when it comesto market timing. This book demonstrates how traders can benefitfrom his insight, using the studies to identify the exhaustion ofestablished trends or the onset of new ones. Whether you’refundamentally or technically inclined, Perl’s DeMarkIndicators is an invaluable trading resource.”—Leon G. CoopermanChairman, Omega Advisors “Tom DeMark, the man whose work inspired this book, is aunique, interesting, and ofttimes iconoclastic technical analyst.Simply put, he thinks about the markets differently from the wayyou or I do. So why should you read this book? Because, having readit, you will almost certainly think about the markets and technicalanalysis differently.”—John Bollinger, CFA, CMTwww.BollingerBands.com “Jason Perl is the trader's technician. DeMark Indicators area difficult subject matter, but Jason shows simply how the theorycan be applied practically to markets. Whether you're day-tradingor taking medium-term positions, using the applications can only beof increased value.”—David Kyte, FounderKyte Group Limited “Jason Perl has taken the playbook from the market’sJohn Wooden, Tom DeMark, and translated it engagingly in a formatthat traders of all levels will appreciate. As one who has usedthese indicators for more than twenty years, I too am appreciativeof Jason’s clarity.”—Peter BorishChairman and CEO, Computer Trading Corporation “Jason Perl has created a trading primer that will help boththe professional and the layman interpret the DeMark Indicators,which I believe represent the most robust and powerful methods totrack securities and establish timely investment positions. Thinkof DeMark Indicators as the Rosetta stone of market-timingtechnology.”—John BurbankFounder and CIO, Passport Capital