TD Propulsion Downside Exhaustion Zones

"TD Propulsion has a number of useful facets, which make it an interesting indicator. In addition to identifying prospective price-exhaustion levels, it also highlights trends in progress. ..." ...., if a market declines, rallies, and then resumes its downtrend without having violated the origin of the decline, you can identify a bear trigger that should provide the catalyst for an extension to a lower target level. The indicator has two components: primary levels, referred to as TD Propulsion Up and TD Propulsion Down entry points, and secondary levels, known as TD Propulsion Up Target and TD Propulsion Down Target. The primary (thrust) levels serve as triggers for extended moves in the direction of the trend toward the secondary (exhaustion) levels. Perl, Jason (2010-05-25). DeMark Indicators (Bloomberg Professional) (Kindle Locations 2156-2164). John Wiley and Sons. Kindle Edition. Every major average has penetrated it's TD Propulsion™ downside entry threshholds. Hence the downside exhaustion (target) zones come into play. They are generally about 2% below current prices. Below are my hand calcs -- I don't have machine code for the indicator --- the figures represent the tops of the zones. Past experience suggests that not every major index will reach these zones. $RUT and $COMPX were the last to break through their downside threshholds $INX 1290 $Compx 2749 $RUT 733 $INDU 12284 These are calculated using the .236 fib ratio of the range from the April/May LT tops to the June 4 low subtracted from the June 20 top for the threshhold trigger and .472 (2x of the .236) fib ratio of that range subtracted from the June 20 IT tops for the target exhaustion areas. Geo

Edited by Geomean, 25 June 2012 - 10:14 PM.

"TD Propulsion has a number of useful facets, which make it an interesting indicator. In addition to identifying prospective price-exhaustion levels, it also highlights trends in progress. ..."

...., if a market declines, rallies, and then resumes its downtrend without having violated the origin of the decline, you can identify a bear trigger that should provide the catalyst for an extension to a lower target level. The indicator has two components: primary levels, referred to as TD Propulsion Up and TD Propulsion Down entry points, and secondary levels, known as TD Propulsion Up Target and TD Propulsion Down Target. The primary (thrust) levels serve as triggers for extended moves in the direction of the trend toward the secondary (exhaustion) levels.

Perl, Jason (2010-05-25). DeMark Indicators (Bloomberg Professional) (Kindle Locations 2156-2164). John Wiley and Sons. Kindle Edition.


Every major average has penetrated it's TD Propulsion™ downside entry threshholds. Hence the downside exhaustion (target) zones come into play. They are generally about 2% below current prices.

Below are my hand calcs -- I don't have machine code for the indicator --- the figures represent the tops of the zones. Past experience suggests that not every major index will reach these zones. $RUT and $COMPX were the last to break through their downside threshholds

$INX 1290
$Compx 2749
$RUT 733
$INDU 12284

These are calculated using the .236 fib ratio of the range from the April/May LT tops to the June 4 low subtracted from the June 20 top for the threshhold trigger and .472 (2x of the .236) fib ratio of that range subtracted from the June 20 IT tops for the target exhaustion areas.

Geo

Thanks for the info! How accurate or how often does this actually happen? Obviously trading the 13's is probably the most profitable, but didn't know where this fit into Demark's library of tools.

"TD Propulsion has a number of useful facets, which make it an interesting indicator. In addition to identifying prospective price-exhaustion levels, it also highlights trends in progress. ..."

...., if a market declines, rallies, and then resumes its downtrend without having violated the origin of the decline, you can identify a bear trigger that should provide the catalyst for an extension to a lower target level. The indicator has two components: primary levels, referred to as TD Propulsion Up and TD Propulsion Down entry points, and secondary levels, known as TD Propulsion Up Target and TD Propulsion Down Target. The primary (thrust) levels serve as triggers for extended moves in the direction of the trend toward the secondary (exhaustion) levels.

Perl, Jason (2010-05-25). DeMark Indicators (Bloomberg Professional) (Kindle Locations 2156-2164). John Wiley and Sons. Kindle Edition.


Every major average has penetrated it's TD Propulsion™ downside entry threshholds. Hence the downside exhaustion (target) zones come into play. They are generally about 2% below current prices.

Below are my hand calcs -- I don't have machine code for the indicator --- the figures represent the tops of the zones. Past experience suggests that not every major index will reach these zones. $RUT and $COMPX were the last to break through their downside threshholds

$INX 1290
$Compx 2749
$RUT 733
$INDU 12284

These are calculated using the .236 fib ratio of the range from the April/May LT tops to the June 4 low subtracted from the June 20 top for the threshhold trigger and .472 (2x of the .236) fib ratio of that range subtracted from the June 20 IT tops for the target exhaustion areas.

Geo

Thanks for the info! How accurate or how often does this actually happen? Obviously trading the 13's is probably the most profitable, but didn't know where this fit into Demark's library of tools.

They're pretty good. I like them enough to keep them by hand, e.g. I posted some of the calcs for a few indices both the breakouts from the June 4 low [using the Dec 2011 lows to Apr/May highs] , and the resistance at the June 20 2012 IT tops using the Oct 2011 lows to the Apr/May high, and the threshhold for the SPX breakdown.

Edited by Geomean, 25 June 2012 - 10:31 PM.