Tom Demark commented that general technical analysis doesn’t work due to it being so subjective. Tom believes in simple, non-optimized, and objective mechanical systems, and believes they should be universal across all markets and all time frames and hold up under all bull market and bear market conditions. He doesn’t believe markets change over time because markets only reflect human nature – fear and agreed, which never changes. Since Tom Demark is an institutional heavyweight and the heavy hitter in trading world, just believe him.
Therefore, when I design my methodology, almost every component in the methodology is programmed to be mechanical and objective. I do not even manually draw horizontal lines, draw trend lines, identify divergence patterns, etc… The software will do the necessary computation and provide me the necessary information automatically. I am happy with 80-90% accuracy, and the most important, no need strain my eye by looking at the chart.