However, relying solely on a "9" or "13" count can be dangerous in strongly trending, parabolic markets (such as a structural crypto bull run). Sophisticated traders use DeMark indicators alongside strict risk controls:
Once a 9-bar Setup completes, the market enters the Countdown phase. This phase measures larger-scale exhaustion and consists of 13 bars. Unlike the Setup, the Countdown bars .
Whether you find a digital copy or purchase the physical text, the value lies not in the file itself, but in the discipline to apply the rules. DeMark himself often warned that his indicators were not crystal balls, but tools to put the probabilities on the trader's side. As with all trading methodologies, understanding the theory from the source is far more valuable than simply applying an indicator to a chart without knowing the math behind it. However, relying solely on a "9" or "13"
When searching for PDF documents or specific papers, ensure you're using reputable sources to avoid any potential scams or incorrect information. Always verify the authenticity and credibility of the information you find, especially if it seems too good to be true or requires payment.
Occurs when the final seller has dumped their shares, leaving the market void of selling pressure. Unlike the Setup, the Countdown bars
Unlike subjective chart patterns (such as head-and-shoulders or trendlines), DeMark’s indicators are entirely rule-based and objective. If the conditions are met, the signal prints; if not, it does not. This removes emotional bias from market analysis, making his tools highly prized by algorithmic and discretionary traders alike.
9 consecutive closes lower than the close 4 bars prior. As with all trading methodologies, understanding the theory
Each bar's close must be compared to the high or low 2 bars prior. For a , the close of bar must be less than or equal to the low 2 bars earlier. For a Sell Countdown , the close of bar must be greater than or equal to the high 2 bars earlier.
: If you're looking for academic or solid research papers, consider searching through financial libraries or databases like JSTOR, SSRN, or Google Scholar. These platforms might host papers or articles that discuss or reference Tom DeMark's techniques.
This is arguably DeMark's most famous indicator. It is designed to identify when a market has reached a point of exhaustion and is likely to reverse.
A is a bar high surrounded by lower highs on both sides.