DeMark TD Points and Lines for Objective Trend Analysis
Summary
The article explains Thomas DeMark’s rules for identifying price extremes and drawing trend lines with less discretionary interpretation. A TD high is a candle whose high exceeds the highs of a chosen number of candles on both sides; a TD low uses the corresponding comparison of lows. The level determines how many neighboring candles are checked, and the article notes that level two points correspond to Bill Williams fractals. TD lines are then drawn through the two most recent qualifying highs or lows at the selected level.
The rest of the article describes MQL4 indicators and Expert Advisors that automate point detection, line drawing, and trading signals. It reports that an example EA can perform well during sustained moves but produces false signals during sharp price movements. The material is primarily a construction and implementation tutorial: it offers example tests but no robust comparative or out-of-sample evidence establishing profitability. Results may depend on instrument, timeframe, settings, execution, and the handling of signals around turning points.
Key ideas
- TD points mark highs or lows that exceed neighboring candles over a chosen comparison level.
- A higher-level point compares a candle with more candles on both sides.
- TD lines connect the two latest qualifying highs or lows at the selected level.
- The article shows how to automate point and line construction in MQL4 indicators and trading robots.
- The example system can generate false signals during sharp price moves, so the described tests do not establish general profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.