Litefinance As an example

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According to Thomas DeMark, a true high should be higher than the closing level two bars previously. And the true low should be lower than the closing level two bars earlier. Therefore, if these conditions are not met, then for the calculation the candles next to the left are taken, for which this condition is true. Now, knowing how to find the true range, we can calculate TD Tolerance levels. As I said before, they will help make your forecast more accurate. To do this, one of the four rules is used, listed below, which is met with one condition, the projected candle must open in the range calculated by TD Range Projection. If the of the instrument breaks through the lower level of TD Tolerance before surpassing the projected high of TD Range Projection, the market is likely to close within the projected range of TD Range Projection.

If the breaks above the upper level of TD Tolerance before breaching the projected low of TD Range Projection, the market is likely to close within the projected range of TD Range Projection. If the high reaches the Belize Mobile Number List projected high of TD Range Projection before the lower level of TD Tolerance and the projected low, then it is very likely that the current candle will close above the high of TD Range Projection. If the reaches the projected low of TD Range Projection before it reaches the upper level of TD Tolerance and the projected high, then it is very likely to expect the market to close below the low of TD Range Projection of the current candle.



LiteFinance: Thomas Demark technical analysis: TD Range Projection indicator |, I will explain the case that was described at the beginning of the article. We have already defined TD Range Projection for candle 2 (gray area). The next step is to identify the next true range for candle 1. The true low condition is met by the current low of the candle at 11208, the true high condition is met by the value of the previous high of the candle around 12101.2. Consequently, the true range for candle 1 is equal to the difference between these two values ​​= 12101.2 – 11208 = 897.2 USD (highlighted in purple on the chart above) Now we have everything to calculate TD Tolerance: upper and lower levels. 897.2 * 15% = 134.58 USD.