The details you ask for? Page 121 of the following PDF. https://dl.rasabourse.com/Books/Technical_Analysis/[DeMark]DeMark Indicators (rasabourse.com).pdf And oh so much more good stuff of Tom DeMark's - I have this book and 3 others he authored. I ignore the clueless who say, proudly no less, they never read or especially buy trading books.
Thanks for the link. I am going to be busy reading TD. Maybe I can use his chapter on defining the trend and ID exhaustion points.
Page 121: TD propulsion TD Propulsion has a number of useful facets, which make it an interesting indicator. In addition to identifying prospective price-exhaustion levels, it also highlights trends in progress. It operates on the premise that, if a market rallies, pulls back, and then resumes its uptrend without having violated the origin of the advance, you can identify a bull trigger that should provide the catalyst for an extension to a higher target level. Conversely, if a market declines, rallies, and then resumes its downtrend without having violated the origin of the decline, you can identify a bear trigger that should provide the catalyst for an extension to a lower target level. The indicator has two components: primary levels, referred to as TD Propulsion Up and TD Propulsion Down entry points, and secondary levels, known as TD Propulsion Up Target and TD Propulsion Down Target. The primary (thrust) levels serve as triggers for extended moves in the direction of the trend toward the secondary (exhaustion) levels. Defining the initial thrust level properly is crucial to the construction of TD Propulsion. To do that properly, you need to consider price action leading up to and subsequent to the primary advance. Both the price decline leading up to a prospective primary upthrust and the subsequent setback need to be taken into consideration— and these moves are validated if they satisfy a minimum percentage requirement. Sounds like Greek to me.
Based on fairly basic but important to recognize price action structure. Impulse origins, swing points, measured moves off said structure etc.
Yeah I dabbled with that and understand it now, but just don't care to get all "fancy" with it on a 1 and 5 minute bar basis. Actually even higher timeframes too. For a potential long find a move down of at least 23.6% of the previous up move, then after bottom and move back up forming a 1st wave swing (high) a retracement of at least 23.6% needs to take place to complete 2nd wave swing (low). With me so far? Of course, that's pretty straightforward. Next calculate 23.6% of the value of the bottom to 1st wave swing (high) and project up that amount from 2nd swing (low), as well as double that amount or 47.6%. So the theory is if first projection is hit look for it to also make second. Just not worth the hassle IMO. Maybe if I had this indicator in TradeStation like many of the others but since I don't I have no use for it.
What you said better makes more sense. In fact I am staring at a price chart while typing this response. You are right.