DeMark On Day Trading Options

Overview

DeMark On Day Trading Options, Futures by Tom DeMark presents trading concepts used by large institutional traders and money managers which are almost totally new to individuals trading their own accounts, and may seem a bit daunting at first glance.

Tom details two of his most powerful indicators as they would be used by an individual day-trader. This book takes all the mystery out of Tom's indicators and shows you, step-by-step, how you can use them on a day-to-day basis to help you spot high-profit trading opportunities.

Description

World-Renowned Analyst Tom DeMark Reveals His 18 Most Powerful Indicators ... Including New Ones Just For Options!

Tom DeMark is known 'round the world for his expertise in developing technical indicators that spot developing trends and high-profit opportunities. Today, his indicators are used by some of the investment world's top money and fund managers.

Now Tom has turned his attention to day trading and options, and has co-written (with his son, "TD," ) a book that details his newest TD indicators and how they work in day-trading options, stocks and futures.

Thanks in large part to help from TD, all the hard-to-understand technical jargon has been eliminated. Instead, you'll find page after page of easy-reading explanations that make even the most complex and sophisticated of Tom's indicators easy to understand.

No detail is left out. You get the complete picture on every single indicator, including Tom's blockbuster favorite...

Picks A Winner 90% Of The Time!!

The indicators detailed in this book aren't just ivory-tower theories. They really work! To prove it, we asked Duane Davis, one of the world's foremost trading system analysts, to test them against historic real-market prices. The results of Duane's testing were astounding:

• One of Tom's most powerful trend-spotting indicators correctly identified major market turnarounds 90% of the time an astonishing record in the volatile S&P market!
• Another TD indicator returned over 830% on equity during the same time period!
• The systems tested by Duane Davis delivered 1-lot profits of $284,988 in 42 months that's $6,785 per month! This tell-all book gives you precise details of these top performers, plus more than a dozen others - 21 indicators in all.

Tom DeMark Range Expansion Index (TD REI)

The DeMark Range Expansion Index is a market-timing oscillator described in DeMark on Day Trading Options, by T.R. DeMark and T.R. Demark, Jr., McGraw Hill, 1999. The oscillator is arithmetically calculated and is designed to overcome problems with exponentially calculated oscillators, like MACD. The TD REI oscillator typically produces values of -100 to +100 with 45 or higher indicating overbought conditions and -45 or lower indicating oversold. DeMark advises against trading in extreme overbought or oversold conditions indicated by six or more bars above or below the 45 thresholds. For more information on using TD REI the user is referred to the DeMark text.

The Formula . . .

IF( ( (HI>=LO5 OR HI>=LO6) AND (LO<=HI5 OR LO<=HI6) ) OR ( (HI2>=CL7 OR HI2>=CL8) AND (LO2<=CL7 OR LO2<=CL8) ) )
THEN
VALUE = HI - HI2 + LO - LO2
ABSVALUE = ABS(HI - HI2) + ABS(LO - LO2)
ELSE VALUE = ABSVALUE = 0
TD_REI = SUM(VALUE, N) / SUM(ABSVALUE, N)

where N is the the TD_REI Period