How To Draw Tom Demark Trend Line
The Tom DemarkTM trend line is in fact created by a professional trader name Tom Demark.
Compared to the conventional trend lines, this TDTM trend line is more systematic and not based on common sense or personal judgement.
Steps to Drawing Your TDTM Trend Line:
Step 1: Pick 2 most recent swing highs or lows (For TDTM trend line, the swing high and low needs not be major. It is simply the most recent swing highs and lows)
Step 2: Connect them and you will have your most recent TDTM trend line.
As more new candles are formed, the TDTM trend line will change and you have to constantly follow up to get the best result.
More Examples on TDTM Trend Line
With the Tom DemarkTM trend line, it’s time to combine it with the Conventional trend line to get better result. The TDTM trend line is only used to draw the short term trend line but the way to draw the medium and long term ones stay the same. Do note that the TDTM trend line will constantly change as new swing high or low is being formed. Although it is pretty tedious to have constantly draw new trend line, it can give you the best and most recent trend line to trade with.