Tom Demark Trendlines System

May 13, 2009 by hyiperz

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After we posted about Tom Demark Forex System last year, now, there is a development of this forex system, especially on its trendlines.

Using Tom Demark Trendlines we can profit on all time frames down to 15M. Forex scalpers and long term traders can profit from this. Also, you might not wait on a break of a TL but can trade its bounce i.e: the price is bouncing inside a triangle drawn by TD TL.
Here are the breakout qualifiers:

Upside breakout qualifiers
Qualifier 1: The price bar prior to an upside breakout must be a down close.

Qualifier 2: The current price bar’s open must be greater than both the current TD Supply Line and the
previous price bar’s close and must then trade at least one tick higher.

Qualifier 3: The previous price bar’s close plus the previous bar’s “buying pressure” must be below the current
price bar’s TD Supply Line price level.

Qualifier 4: The current price bar’s open must be above both the previous two price bars’ closes, and the
current price bar’s TD Supply Line must be above the previous price bar’s high.

Downside breakout qualifiers

Qualifier 1: The price bar prior to a downside breakout must be an up close.

Qualifier 2: The current price bar’s open must be less than both the current TD Demand Line and the previous
price bar’s close and must then trade at least one tick lower.

Qualifier 3: The previous price close minus the previous bar’s “selling pressure” must be above the current
price bar’s TD Demand Line price level.

Qualifier 4: The current price bar’s open must be below both the previous two price bars’ closes, and the
current price bar’s TD Demand Line must be below the previous price bar’s low.

Here is a picture of the bounces: