[Gale.in, Advance My Trade series] TD Sequential Indicator is a hidden gem!
Be an investor or a trader, TD sequential Indicator is a hidden gem and should be everyone’s kitty!
TD sequential Indicator is named after Tom Demark.
“Tom DeMark,the man is a unique, interesting, and ofttimes iconoclastic technical analyst” – John Bollinger, CFA, CMT.
(Image: Perfect TD Sequential Buy Setup)
TD sequential Indicator counts 1 to 9 lower closes or higher closes and further upto 13 (if available).
9th candle in the correction phase is most likely end of correction, next 1st candle in the trend direction is the best buy.
Complete TD Sequential Buy Setup:
1. Complete 1 to 9 marked candle rally. (Marked in Orange boss above).
2. Complete 1 to 9 marked candle correction. (Marked in Blue box above).
3. Support and resistance:
True low of First rally (Orange box above) is considered as Support. (Marked as earlier support in the image above)
True high of First rally (Orange Box above) is considered as resistance.
Fresh Support is created once second rally is completed.
Fresh support is the true low of correction candles (Blue box above) (marked as support in blue line).
4. Fresh support ends above earlier support.
5. 8th or 9th candle in the blue box ends below lows of 6th and 7th candle.
Entry, Stoploss and Target:
1. Entry is the first positive candle after corrective phase.
2. Stoploss is 1 ATR below Fresh support. (ATR is average true range).
3. Target. Target is resistance created by the corrective rally. (True high in the Blue box.)
So, how does the counting start and end?
1. Consider if a candle X’ closes below X (4th candle before X’) followed by Y’ candle closing above Y (4th candles before Y’ or the candle followed by X) then Y’ is the first candle in the bullish count.
So, do we need to count the candle?
Visit in.tradingview.com (Tradingview is a free browser based charting software. Free for End of day data analysis, which is good for investors. paid version gives live market data which is free for a month for all users with just email id signup.)
1. Open chart > Choose your script, Timeline and candlestick in the orange box shown below, and click ‘Indicator’ in the box box shown below.
2. Click on Public Library and click TD Sequential indicator.
3.Tada, the TD indicator is open, the numbers are automatically loaded. Just manually plot resistances and support as suggested above, the resistance and support shown in the indicator is not a perfect one.
4. All you need is to find a Prefect bullish or Bearish setup as shown and explained above.
Thank you for your time.
1. The above charts are from Browser charting software from Tradingview. Create your free account now.
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