Regulators at the Securities and Exchange Commission (SEC) have finalized the DeMark Technical Analysis model, which is now officially recognized as a rule. The model, created by J. Peter Steidlmayer, has been a subject of debate among traders and analysts for years. Steidlemayer's firm, DeMark Securities, has been pushing for the model's recognition since 2017. The SEC's decision to recognize the model is seen as a significant step forward for technical analysis, which has been historically viewed with skepticism by mainstream finance.
The model, known as the DeMark Index, is used to identify key levels of support and resistance in financial markets. It is based on a proprietary set of rules that take into account various market indicators, including price, volume, and time. The model has been widely used by traders and analysts in the financial industry, including at major institutions such as Goldman Sachs and Morgan Stanley.
The recognition of the DeMark Technical Analysis model is also seen as a significant development in the world of technical analysis, which has been growing in popularity in recent years. The model's recognition by the SEC is expected to increase its visibility and credibility, which could lead to increased adoption by traders and analysts.
The recognition of the DeMark Technical Analysis model has significant implications for the financial industry. For example, the model's use by major institutions such as Goldman Sachs and Morgan Stanley could lead to increased efficiency and effectiveness in their trading operations. The model's use by smaller firms and individual traders could also lead to increased competitiveness in the market.
The recognition of the DeMark Technical Analysis model is also seen as a significant development for research communities that have been studying technical analysis. The model's use by major institutions and its recognition by the SEC could lead to increased funding and support for research into technical analysis, which could lead to new insights and breakthroughs.
The recognition of the DeMark Technical Analysis model is part of a larger trend in the financial industry towards increased recognition and adoption of technical analysis. In recent years, there has been a growing recognition of the value of technical analysis in financial markets, with many mainstream finance institutions now recognizing its importance. The SEC's decision to recognize the DeMark model is seen as a significant step forward in this trend.
Why it matters: this intelligence reflects a shift that researchers and analysts should follow closely.
Billy Odell Tucker-Robinson is the founder and host of Banking With Billy, an independent financial intelligence platform covering markets, stocks, AI, crypto, and world news. Billy operates a 24/7 live AI radio and Stock TV platform, hosts a growing Discord community, and produces daily content on YouTube @BankingWithBilly.
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