DeMark's approach focuses on the use of sequential indicators, which are designed to identify potential reversals in market trends. His techniques are based on the idea that markets tend to move in repetitive patterns, and by identifying these patterns, traders can anticipate potential turning points. DeMark's indicators, such as the Sequential and the Combo, are used to identify overbought and oversold conditions in the market.
DeMark, T. (1994). New Market Timing Techniques. McGraw-Hill. trading tom demark new market timing techniquespdf google
The Sequential indicator, for example, is a 9-step process that identifies potential reversals by analyzing the price action of a security over a specific period. The indicator provides a series of numbers, known as "numbers," which are used to gauge the market's momentum. When the indicator reaches a certain level, it signals a potential reversal in the market trend. DeMark's approach focuses on the use of sequential