Study of Tom DeMark D-Waves on actual BTC USD price action

2020년 4월 17일

I love the fact Tom DeMark gives strict and precise rules on how to determine his indicators and patterns. I have applied his rules for TD D-Waves (his own variation of Elliot Waves) to the actual BTC USD price action.

To origin D-Wave 1 you need to have a 21 low bars close (a close less than all twenty prior closes), then the D-Wave is confirmed when you have a 13 high bars close (a close that is higher then all twelve prior closes).
The fade and completion of D-Wave 1 will come when you have a 8 low bars close (a close less than all seven prior closes) and this means also that D-Wave 2 is in progress.

D-Wave 2 will extend until when the market records a 21 high bars close (a close that is higher then all twenty prior closes), that will confirm too that D-Wave 3 is in progress.

Applying those rules to actual chart, we see D-Wave 1 is complete and D-Wave 2 is in progress.

Tom DeMark gives this price projection for D-Wave 2: its pullback should ideally be 61.8 percent of the distance traveled between the low close of D-Wave 1 and the high close of D-Wave 2.
The theory is giving us a target price around 5.8k before we have the raise by D-Wave 3.


Bibliography: "DeMark Indicators" by Jason Perl