The New Science of Technical Analysis
by Thomas R. DeMark
Quick Summary
This book could not be fully processed as the PDF contains scanned images rather than extractable text. Based on the Wiley Finance publication metadata, this is Thomas DeMark's seminal work on his proprietary technical indicators including TD Sequential, TD Combo, and TD Lines, which represent a systematic, mathematical approach to market timing and trend exhaustion analysis.
Categories
- Technical Analysis
- Trading Systems
- Market Timing
Detailed Summary
"The New Science of Technical Analysis" by Thomas R. DeMark, published as part of the Wiley Finance series, is a foundational work in quantitative technical analysis. The PDF version available is a scanned image document from 2006 that could not be fully text-extracted, limiting the depth of this summary.
Thomas DeMark is one of the most respected technical analysts in financial markets, known for developing proprietary indicators used by major institutional investors and hedge fund managers worldwide. His work is distinguished from traditional technical analysis by its emphasis on precise, mathematical rules rather than subjective pattern interpretation.
DeMark's most notable contributions, detailed in this book, include the TD Sequential indicator, which identifies trend exhaustion points through a specific counting methodology applied to closing prices. The indicator generates "setup" counts (nine consecutive closes compared to a specific lookback period) followed by "countdown" phases that signal potential trend reversals. TD Combo provides an alternative counting methodology that often confirms TD Sequential signals.
TD Lines represent DeMark's approach to trendline construction, which differs from traditional trendline methods by connecting the most recent price pivots rather than the most prominent ones, under the theory that recent price action is more relevant to current market dynamics. TD Points provide a systematic method for identifying support and resistance levels based on mathematical relationships between recent price extremes.
DeMark's work is notable for its intellectual rigor and its adoption by prominent institutional investors, including Paul Tudor Jones, Steven Cohen, and Leon Cooperman. The methodology represents a genuine attempt to bring scientific precision to the often subjective field of technical analysis.
