DeMark's approach focuses on the use of sequential indicators, which are designed to identify potential reversals in market trends. His techniques are based on the idea that markets tend to move in repetitive patterns, and by identifying these patterns, traders can anticipate potential turning points. DeMark's indicators, such as the Sequential and the Combo, are used to identify overbought and oversold conditions in the market.
References:
DeMark, T. (1994). New Market Timing Techniques. McGraw-Hill. trading tom demark new market timing techniquespdf google