That is why DeMark decided to modify the classical theory.Īn experienced trader focused not on the potential calculated extremes, but on how the price behaves near them. However, as practice shows, these averaged values are played out quite rarely in the market, which is due to the not always predictable behavior of a large number of players, the release of fundamental news, and other factors.

Cycle death - the last phase, during which the old trend is replaced by a new one in the opposite direction.Ĭycle theory also assumes that when analyzing the market over a long time period, you can predict the behavior of highs and lows, focusing on the average value of past extremes.

During the aging cycle, there is a correctional movement to that which took place in the youth phase.

At the third stage, the movement becomes mature, which is accompanied by a slowdown in the price movement.

At the second stage, the cycle develops, forming a strong directional movement in the desired direction.

During this period, there is still no one hundred percent certainty that the price will change direction All a trader needs to do to be successful is to catch the moment when one trend changes to another and open trade-in time.Īny cycle can be divided into several stages: This means that a decline will always be followed by an increase and vice versa.

That is, any of his movements is repeated after a certain time.

Its basic rule is that the market is cyclical. TD Sequential MT4 Indicator - Cycle theory automationĪs already mentioned, for TD Sequential Demark used the classical theory of cycles.

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