Thomas Demark Trading System


TD-Lines and TD-Points

A trend line is simply a diagonal line on a chart that connects two or more price points. Traders use these lines to mark entry and exit points, similarly to the use of horizontal support and resistance levels.

Which price points a trend line connects is where it gets tricky. See, different traders tend to connect different price points, producing different trend lines. Thomas Demark developed a mechanical way to pick out these price points, which he calls TD-points or pivot points.

The first thing to note about drawing trend lines using the Thomas Demark way is that you should always start from right side and move toward the left, since current price movements are far more important than those from previous days. So by drawing the trend lines from right to left, you ensure that you are starting with the most recent data.

TD-Lines and TD-Points