Replies to post #11331 on 123Tom's TA study group

[oldmystic]

Setup phase complete at bar 9. Yes, there is a price flip by no follow through. Price continued lower and so the Countdown phase ensued. In 2018 it reached 4 bars before reversing, in the present example 3.

Tom DeMark’s TD Sequential:

This indicator identifies a turning point in a price trend for a security. It does this by running count of price bars to gauge trend exhaustion.

The set-up and countdown for this indicator is as follows:

A buy set-up occurs when the previous 9 bars each close below the bar 4 bars prior to it. It is said to be perfect if the 8th or 9th bar close below the previous 7 or 8 bars.

For the TD Buy Countdown, the close of the ninth bar must be lower than the previous two bars. If this is the case, bar 9 becomes bar 1 of the TD Buy Countdown. Once that is complete, the TD Buy Countdown begins.

The countdown must include 13 bars that each close below the low of the two bars earlier. Unlike the buy-set up, this does NOT have to be consecutive. One would continue counting until the countdown qualifier (bar 13 must be less than or equal to bar 8) or until the countdown cancellation (a sell setup appears or recycle occur).