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I took the time to code the sell side part of the Thomas DeMark Sequential (TDMS) indicator into MetaStock. It occurred to me that I could use the sell side as a long entry signal. Since TDMS shows the sequence of a trend, the sell side part of the indicator would signal an up trend prior to giving a signal.
In contrast to the TDMS buy indicator, outlined in a previous post, it seems best to use only the stage 1 (1-9) sequence when using the sell indicator to enter long trades. So instead of waiting for stage 2 (1-13) to develop, it may be more prudent to exit at point 9 of stage 1. Perhaps this reflects the notion that markets take a longer time to develop an up move versus a down move. I hope the video clarifies these points.
Please remember that there is no Holy Grail, Silver Bullet or Secret Formula. An indicator is just that, an indicator. The examples posted on this blog are ones that show when something has worked in the past. There are way more charts of when things did not work. However, it does help to be able to recognize a past situation when something similar occurs in the future. Seeing something that looks familiar is better than seeing nothing at all.
All Thomas DeMark Sequential indicator stuff shown here is the work of Thomas DeMark. Thank you Thomas DeMark.
Thank you for your time.
If the video does not work you can click on this link.
http://screenr.com/BUQ
Next time I think I will try a download and then an upload.
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