Tom Demark Trend lines

By Kostasze ·  

Good day traders,

In this article I am going to show you how to use Demark Trend lines. There are traders who have difficulties to draw or to use trend lines. Demark indicator is not something unique, although it’s very popular to the traders. It’s an indicator which draw trend lines and you can use it to take long or short trades.

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This is the first chart of the day. It’s from EURUSD currency pair and I use a 15 minute timeframe. You can’t see it very clearly from this chart but I have the Demark Trend Lines Indicator. Look at the end of the screen shot. You can see a blue trend line and a red one. This is how the Demark Indicator looks like. Actually, it draws automatically two trend lines from the recent price action and behavior and finally you have a triangle.

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Take a more clear view on this chart.

So, how can you use this indicator? It’s very simple. The upper trend line acts as a resistance and the lower trend line acts as a support. So, you can take short positions when the price hit the upper trend line, the red one,  and you can take long positions when the price hit the lower trend line, the blue one. Another way to use his indicator is to trade breakouts. When the price break the upper band we have a breakout and you can take a long position. On the other hand, when the price break the lower band we have a breakdown and you can take a short position. There are many traders who are happy with this indicator.

Best Regards,

Kostasze

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