Replies to post #11015 on 123Tom's TA study group

[sab63090]

https://www.elliottwave.com/

[oldmystic]

Kevin, I rely a lot on the Tom DeMark Sequential Analysis which is designed to identify trend exhaustion and reversal. It consists of two phases, Setup and Countdown. Setup phase is 9 consecutive closes in the same direction exceeding the close 4 bars earlier. Countdown phase is 13 non consecutive closes exceeding the close 2 bars earlier. Price flip occurs after Setup with a close in the opposite direction, within the subsequent 4 bars, which exceeds the close 4 bars earlier. Price flip occurs after Countdown with a close in the opposite direction which exceeds the close 4 bars earlier. For Countdown, this close does not need to occur within the subsequent 4 bars. The following link outlines the current count of a Weekly chart of the NDX. https://invst.ly/12bdld Notice that Price flips occur after bars 10, 11, and 12 of the Countdown phase, however, the Setup in the opposite direction did not complete so the Countdown phase continues. Please let me know if you have any questions.