DeMark Rate Of Change Indicator for ThinkorSwim

[BenTen]

This is a TD ROC indicator which is made by demark and enhances the normal ROC

thinkScript Code

# DeMark Rate Of Change
# Assembled by BenTen at useThinkScript.com
# Converted from https://www.tradingview.com/script/bLHzbb9M-Demark-Rate-Of-Change/

declare lower;

input source = close;
input length = 12;

def roc = 100 * source / source[length];
plot rate = roc;

plot os = 97.5;
plot ob = 102.5;

rate.AssignValueColor(color.white);
os.AssignValueColor(color.MAGENTA);
ob.AssignValueColor(color.CYAN);

 

[markos]

@BenTen very nice. Demark is a bit "mysterious", in a good way. Check the web, Tom DeMark recommends different lengths for different instruments along with different chartings. Happy researching, it may be worth it!

 

[horserider]

The plot is the same as the ToS Rate of Change. It has just been put on a different scale. How is that mysterious?

 

[markos]

I guess that's the mystery... what did DeMark actually do? If it's not different, it's peculiar that he put it in his book, that's all I'm sayin'.

 

[horserider]

@markos Do not know. All I know is the actual plot is identical. Not read the book maybe it is explained there.

 

[samoya]

I wonder, if anybody has experience with the DEMARK Pressure Ratio
and if it is possible to write a script.

https://www.thinkscripter.com/community/index.php?resources/demark-pressure-ratio.22/

Thank you

 

[scott69]

I don't know if I should admit this, but I have read "New Market Timing" and "The New Science of Technical Analysis." DeMark is famous on Wall Street, and his reputation is that he is extremely successful. The original "quant" if you will. If you really want a challenge, read one or both of these books. If you want a painful challenge, write some of his systems into an Excel System or code it into Metastock or Tradestation (or now, into TOS). I did code all of his indicators into Metastock and back test them with average results. I know that I could have bought his system for Metastock, but what fun is that. Anyway, his systems, to put it mildly, are the Rube Goldberg puzzles of the system trading world. (Look up Rube on the net for some really COOL moving puzzles). Very complex, very multi-aspect indicators which try to cover every imaginable possibility. I guess if you have a team of programmers and sub-quants at your disposal, extremely complex systems are great. But for me, there are easier ways to make money (i.e. some of the systems on this site). OK, that being said, my advice is to try out some of his methods, but my experience was that they are so complex that they don't seem to work as well as all the hype surrounding DeMark. More simply, the profits don't justify the time and complexity. If you really want to use his systems, and they do have much public fanfare, make your way through the books. He does do a nice job of explaining his indicators step-by-step, which is nice if you want to program them. And unless you really want to own the books (if you are really going to use them over and over) get them from the library, as they are expensive. I did buy my first book, but NOT the second book, LOL.

 

[samoya]

@scott69, thank you very much for your explanation. Thats the beauty with this community, to get really good feedbacks.
I agree with you, that this forum offers a lot of fantastic tools.
Thank you for your time.

 

[scott69]

@samoya It is funny that as I jumped into this conversation, it got me to thinking. I have to correct that I said that I read two books. I actually read three. The 3rd book is "DeMark Indicators" (2008) by Jason Perl. He is a self-described disciple of DeMark. He wrote his book as a clarification, summary and abbreviated explanation of all of DeMarks more popular indicators. One thing that should be noted is that most of DeMark's (TD) indicators either build upon or are a part of other TD indicators. The TD ROC (Rate of Change) indicator, for example, is stated that it is an integral part of the TD Alignment but can be used as a stand alone indicator. I do have this book which I read in 2011 when I was programming the "TD" stuff. Just a cursory look at the table of contents, Perl deals with 16 of DeMark's most popular indicators such as TD Sequential, TD Combo, TD Lines, TD Retracements, TD Trend Factor, TD Propulsion, TD Oscillators, TD Moving Averages, TD Range Projection, Expansion, Breakout and Channels, TD Differential, Reverse Differential and Anti-Differential and, lastly, TD Waldo Pattern. Whoa, that's a mouthful. More importantly, he also dedicates a chapter to describe how to use the TD series. This would be a good book to order (and have in a day or so) if anyone is serious about DeMark. Also, this got me thinking about my time coding this stuff into Metastock, and while researching, I remember searching the internet and finding various pieces of code for Metastock and Tradestation, which helped me in my pursuits. His more popular indicators, those several at the beginning of my list, are all already in MS and Tradestation in one form or another (some VERY inaccurate or incomplete as they are difficult indicators to code properly), which you can make your way through to translate them into thinkscript. Also, I'm sure that some are here, or on the net somewhere in thinkscript format. Finally, I could swear that most of DeMark's books are on the net, but I would be concerned that they are pirated, so let your conscience be your guide, but I think they are out there if you have an itch that you just can't scratch unless you get your answers. I hope this helps if a coder wants to work TD into their systems. Good luck.