Raoul Pal is a well-known figure in the finance and investment world, particularly recognized for his expertise in macroeconomic trends. He is the co-founder and CEO of Real Vision, a financial media company offering in-depth video interviews and research publications with some of the world’s best investors and economists.
Before establishing Real Vision, Pal had a successful career in the hedge fund industry. He retired from managing money at the age of 36 after a successful stint at Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. He also ran a successful global macro hedge fund.
Pal is known for his global macroeconomic perspectives, which he shares through various media channels, including Real Vision and social media platforms. His insights cover a broad range of topics, including global financial markets, commodities, cryptocurrencies, and economic trends. He is particularly noted for his analysis of the cryptocurrency market and has been a vocal proponent of digital assets like Bitcoin and Ethereum.
On November 9, addressing his one million followers on the social media platform X (formerly known as Twitter), Pal referenced the Tom Demark Sequential indicator to support his view that Ethereum is gearing up to surpass Bitcoin.
The Tom DeMark Sequential is a technical analysis indicator developed by Tom DeMark to identify potential price exhaustion and reversal points in financial markets. This tool is particularly popular among traders and analysts in various markets, including forex, stocks, and cryptocurrencies.
The Sequential consists of two main components: the Setup and the Countdown. Here’s a brief overview of how it works:
- Setup: The Setup is the first phase and consists of nine consecutive candles. For a buy signal, each candle’s close must be lower than the close four candles earlier. Conversely, for a sell signal, each candle’s close must be higher than the close four candles earlier. Completing a Setup is the first indication of a potential trend reversal.
- Countdown: After the Setup is completed, the Countdown begins. This phase consists of 13 candles. For a buy Countdown, the low of each candle must be lower than the low two candles earlier. For a sell Countdown, the high of each candle must be higher than the high two candles earlier. The Countdown doesn’t need to be consecutive candles.
The Sequential indicator is often used to identify exhaustion points in a trend, suggesting that the current trend might be nearing its end and a reversal could be imminent. However, like all technical analysis tools, it’s not foolproof and is best used in conjunction with other indicators and methods to confirm signals.
Tom DeMark’s Sequential has gained a reputation for its effectiveness, especially in markets that exhibit strong trends, and is a favored tool among many professional traders for its ability to provide clear, actionable signals based on price action.
Pal highlighted a specific pattern, the weekly DeMark 9 count for the ETH/BTC cross, suggesting that Ethereum is likely to outperform Bitcoin in the current market phase.
Furthermore, Pal discussed the significance of Ethereum-based exchange-traded funds (ETFs), which he considers the “holy grail” for asset managers. He explained that these ETFs allow managers to capture yield while providing only price performance to holders, making it a highly profitable venture until competitive alternatives emerge.
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