D- Wave DeMark® Indicator

D-Wave is a trend classification tool that divides price movement into phases:

1. Setup (Impulse Wave) - Wave 1

2. Reaction (Pullback/Correction) Wave 2 and 4

3. Trend Resumption - Wave 3

4. Exhaustion - Wave 5

It’s more qualitative than Sequential, but when coded in platforms, it can auto-label price waves.

🔍 What to check:

• What phase is BTC in?

  • If it’s in Wave 5 (Exhaustion), a major trend could be ending.

  • If in Wave 2 or 4, it’s likely a pullback in a larger trend.

• Tradeinsider.com uses the complex approach: Identifying more bullets like divergence or support/resistance confirmation (see next tutorial)

🧠 Example interpretation:

• If BTC is in D-Wave 5 and a Sequential 13 sell has triggered → Strong signal for a potential top.

• If in D-Wave 2 or 4 and Sequential is in early buy setup → Watch for bounce continuation.