![]() So, we can assume that the price should be rising in the near future. Let me use an example to explain the pattern:Īs you see from daily chart above, bar number 5 closes higher than the four previous closes. A down close occurs after a high or an up close occurs after a low, and the close following the high is greater than the close prior to the high, or the close following the low is less than the close prior to the low.The first condition is also satisfied, when the close of the trend high is greater than the previous price bar, or the close of the trend low is less than or equal to the previous price bar There can be an opposite situation, when the market closes lower than the four previous closes (for a potential downward reversal). The bar closes higher than the four previous closes.TD Waldo Pattern TwoĪ prospective reversal bar can be identified when: I will traditionally explain the examples on a daily timeframe. As with many of the TD indicators, you can apply these patterns to any market or time frame. He discovered a total of seven chart patterns, which he numbered two to eight (don’t ask me what happened to number one). It turned out that some of the classic market models mean exactly the opposite of what is written in the textbooks. Then the young analyst decided to conduct his own research, which led to unexpected results. Everything that seemed to be perfect in theory, often failed in practice. 7 Waldo Chart patternsĪt the very beginning of his career, Thomas DeMark faced difficulties in the practical application of traditional market analysis systems. So, DeMark described in his book a series of price relationships that he referred to as TD Waldo Patterns. These cartoons suggested Thomas DeMark that in much the same way that you can find the cartoon character if you look closely enough, you can find meaningful patterns if you carefully inspect a price chart. The challenge for the reader is to find Waldo, who is hidden somewhere amid the hustle and bustle. Where’s Waldo? cartoons depict busy crowd scenes, often containing hundreds of different characters. Waldo is a character of a series of books and cartoons created by a famous author and artist Martin Handford. TD Differential, TD Anti-Differential, TD Reverse Differential ( see here).TD DeMarker 1 and 2, TD Pressure, TD ROC, TD Alignment ( see here).TD Sequential and TD Combo ( see here).TD Trend Factor and TD Propulsion ( see here). ![]() In the previous articles, I described the application of such DeMark's tools as: This is so far my final article devoted to Thomas DeMark’s indicators, which will describe the so-called TD Waldo Patterns. TD Waldo Patterns: calculation formula, necessary conditions, properties, signals, theory and practice of application
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