This is a strategy developed by Tom DeMark. This strategy is based on drawing trendlines on recent swing highs or lows. Trade is initiated during the breakouts of the trendlines.
The Demark trading strategy is applicable in a 15 minute to a daily timeframe and there is no need for additional indicators because you will only need to use price actions.
There are only two types of trendlines: upward trendlines and downward trendlines.
To draw upward trendlines, you find two bottoms of price moves and connect them and you have a trendline. To draw a downward trendline, you find two peaks of price moves and connect them and you have a trendline.
Draw the up and down trend lines on your chart.
Look for a break of the trend line on the chart to identify signal trend direction.
The candlestick that breaks the trendline must close below or above it, depending on where it break.
Place a buy stop or sell stop order a few pips away from the high or low of the candlestick.
Use Previous Peaks or Bottoms as your take profit target.
You can use a trailing stop and place it on the peaks and bottoms as a trade moves profitable to lock in your profit.
Use EURUSD 4-hour chart for the template.
How to install DeMark Forex Swing Trading Strategy?
Download DeMark Forex Swing Trading Strategy.zip
Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
Copy tpl file (Template) to your Metatrader Directory / templates /
Start or restart your Metatrader Client
Select Chart and Timeframe where you want to test your forex strategy
Right click on your trading chart and hover on “Template”
Move right to select DeMark Forex Swing Trading Strategy
You will see DeMark Forex Swing Trading Strategy is available on your Chart