How to identify the end of the trend? TD Trend Factor and TD Propulsion

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Today we will talk about TD Trend Factor and TD Propulsion. These are two independent technical tools that, in combination, help to identify the trend reversal moment and potential targets quite accurately. But first, I'd like to reveal a little DeMark secret. After extensive experiments with Fibonacci numbers, DeMark identified the two most important ones. These are 0.382 and 0.618. By subtracting one from the other and dividing the result by 4, he found the value of 0.059. Later, over many years of using this number in practice to calculate support and resistance levels, he came to the conclusion that the most frequent ratio that occurs in trading is 0.0556. Therefore, when calculating resistance levels, an ascending percentage TD Trend Factor basically aims to identify the trend reversal level and confirm its relevance.

To do this, we first need to find out the reference Mexico Mobile Number List point. For a downtrend, it is determined by the following conditions: Identify a candle that marks the peak of the uptrend. If the close of the upper candle occurred above the closing level of the previous bar, then the reference point starts from the high level of this bar. If the close level of the extreme candle is below the close of the previous price bar, then the reference point is the close level of the extreme candle. To explain it better, I will give an example: LiteFinance: Thomas Demark technical analysis: TD Trend Factor and TD Propulsion level indicator for trend analysis |  Litefinance The chart above shows Bitcoin's all-time high. Its peak is at the level of 19891 USD.



We will see that the close level of this bar is lower than the close of the previous bar, therefore, the reference level is the close of the extreme bar. LiteFinance: Thomas Demark technical analysis: TD Trend Factor and TD Propulsion level indicator for trend analysis  Litefinance This level is . So based on this level, we will build the TD Trend Factor levels for a downtrend. The easiest way is to calculate them in Excel. Therefore, I have the following calculations You can keep calculating this way until the result is close to 0. With rounding to integers, there are the following levels. If we analyze the history of the BTCUSD chart movement, we will see that the downtrend levels TD Trend Factor has developed excellently before (see the chart above). At the same time, it is seen that the lower the market adjusts, the denser the mesh becomes.