Operating almost exclusively on the institutional side of the business, DeMark flew below the radar of public investors for roughly two decades until he published his first book, The New Science of Technical Analysis, in 1994. Although he has not written a book since 1999 and says he has no plans to write another, he has nonetheless become something of a household name to a generation of traders and investors, both through his books and the dissemination of some of his indicators on several analysis platforms. Bloomberg recently launched the Tom DeMark "Cursor Commentary" service, an online feature that automatically explains his tools and trade signals.

In this portion of an interview that began in the April Futures & Options Trader magazine, DeMark discusses specific applications of some of his tools and how he developed them — and makes some interesting claims about Fibonacci numbers.