Price Patterns Do Not Repeat Themselves If this were in actuality the case, my research work would

have been in vain. After a respite of 10 years, TD Analog™ has been resurrected as an object of research.
Rather than spend a lengthy discourse on TD Analog, I prefer to describe in general terms its
construction and purpose. It has been said that history has a tendency to repeat itself. Although the
characters and the settings may not be the same, the events and the outcomes do appear to repeat
themselves throughout history. Likewise in the marketplace, various price patterns seem to repeat, and
often their implications are similar as well. At the time these observations were made over 20 years ago,
the technology was not sufficiently advanced to produce and catalog these repetitive price patterns.
New technology has enabled me to research and develop a series of relationships to facilitate
comparisons between various markets and price patterns in order to extrapolate price behavior. The
product of this effort is TDAnalog.

TD Analog is designed to take a snapshot of current price activity and then superimpose that price
movement upon previous, similar price pattern activity to locate a match. For example, you can
compare the current market's open, high low, and close with the previous trading day's comparable
price levels, as well as the trading days 2, 3,5, 8, 13,21, 34, and 55 trading days earlier. Additionally, you
can relate the closing price versus the opening price for each day and compare the relative prices of
each of these trading days with each as well as with the other trading days. Next, determine whether a
buy or a sell Setup (a la TD Sequential or TD Combo) has most recently occurred to define whether the
trend is up or down. Then apply TD Moving Average I to evaluate and confirm whether price is in a
short-term up or down trend. Finally, decide what percentage of these various price relationships you
prefer to have exist and then compare the price activity to draw conclusions regarding future price
movement.

I set my DeMark TD Analog™ signal to print as large purple dots on my charts, with high dot above
the price bar and a Low signal dot below. Neither Jason Perl's nor Tom DeMark discuss or describe
the TD Analog™ in their books. I coded it to address both highs and lows, created code to do market
scans and trading strategies and for back testing.

It is coded with 56 inputs, with the first being the current price bar and the other 55 (note the
Fibonacci) are price comparisons broken into designate "levels" ( comparisons of two price bars in
the time series, using the last(i.e. current) price bar in the series and a defined prior (earlier) bar in
the time series for an "analog" condition --Mandelbrots affine or self similarity fractal idea). So for
example, at every new bar on the chart I can ask whether the current price is either higher or lower
than the price a defined/selected # of bars prior. If that is the case, then the initial price relation
within a set/defined bar length (i.e. Time frame) is established. I call that level 1 price and it is, by
definition, a fractal object. One can then use that fractal object as a first "level" to make comparisons
of THAT level price with price "X" number of bars prior to that and in effect establish new levels
which to compare and find self similar segments to them OR to check different comparisons

When I search the times series to find similar fractal objects (price relation at a defined bar length
prior) I.e I'm asking whether a second instance of that "analog" condition occurs, namely the same
relationship of price with the price a defined # of bars earlier. Let's call that level 2. Then, if that is
also the case, lets call that level 2, level 2 prices are used to compares with levels in the past. In
Tom's iteration in his indicator, he goes to the 8th level, (note the Fibonacci again) and varies bar #
prior for the comparisons

As far as I know Tom has never disclosed how he came up with his default settings . I've never
devoted the computer time to see if I could optimize them better for each instrument I trade as the
default settings work pretty well on just about every chart, with their biggest draw back being
early/multiple prints in thrusting moves.

EWH appears to have bounced off that trend line with a nice decline this morning's pre market