Pulled out yet another variation of the indicator and simplified description: When the 9 count is completed, it is at that point, a price pause, price pullback, or reversal is likely. Could you post the simplified rules for taking a trade? The logic is based on the fact that the four candles following the anticipated reversal are likely to be sharp and one-sided affairs. You would look to close the position at the end of the fourth candle. I use them all — 5, 15, 30, 60 aggregated and non -aggregated , , 4hr, daily, 2day, 3day, weekly, monthly. August 13, at 7:
Mar 10, · Inviting traders using TD (Tom Demark) sequential counts in their analysis & trading any pairs of interest in forex with or without any other analyses or price action.
A buy signal comes if the price breaks the upper line in the bullish direction. A sell signal comes if the price breaks the lower line in the bearish direction. If the price breaks the upper Demark trendline, then you would open a long trade. On the contrary, if the breakout comes through the lower line, then you would open a short trade in the currency pair. If you are long, you can place your Stop Loss order below the lower trend line. If you are short, then the Stop can go above the upper line.
If, using this method, the stop loss is at a distance that is relatively too far for your comfort level, then use an intervening swing for your stop loss placement. If you are using a more sophisticated Demark trendline indicator, you will likely have levels on the chart that are marked and suggested as a potential target. If you do not have this feature or prefer to manage the exit on your own, then you should watch next level support or resistance levels after the breakout for potential exit points.
Refer to the image below. The blue line and red line represent the Demark trendlines. The buy signal comes when the price breaks the upper red line. Once that happens, we would look to execute a long trade and protect the position with a Stop Loss order. The stop loss can be placed below the lower Demark line.
The magenta line marks the most significant recent top on the chart. Notice the two Demark TL lines are compressing price action, and we expect to see a volatility expansion out of this consolidation. With the breakout to the upside, we are likely to see the most recent significant resistance level get tested, which is exactly what happens.
The second Demark indicator that we will discuss is the TD Sequential indicator. This study is a bit more complicated and will require more practice to apply successfully in live market conditions. The TD Sequential indicator adds various numbers on your chart.
These numbers are located above and below the Japanese candlesticks on the chart. If you take a closer look below, you will notice that most of these numbers are not random, but instead are in an ascending order starting from 1. What you see above is the TD sequential indicator plotted on the price chart. Again this indicator contains only numbers marked at the upper or lower range of each candle. This may look confusing at first sight, but there is a method to this as you will soon learn.
So, as you may have guessed, the TD Sequential indicator represents a sequence related to the health of the current price trend. But how is the TD sequence built?
An initial starting point is marked with a 1. And this rule is in force for every succeeding bar. There are two basic signals that come from trading the TD Sequential strategy.
The signals forecast an exhaustion in price and a high probabity for an impending correction. The price increases and on the way up we get the respective TD Sequential numbers: This means that the price action has closed 9 consecutive candles where each has closed higher than the candle 4 periods earlier.
The signal is even stronger if the highs of candles 8 and 9 exceed the highs of candles 6 and 7. When you confirm this pattern, this is very likely to result in a pullback in a bearish direction. The trend you are analyzing is bearish in this case. And the numbered candles will be bearish as well. In this scenario, for a bullish signal, we will need to have nine bearish candles — each of which closes lower than the candle that is located four periods earlier.
The signal is even stronger when the lows of the candles labeled with 8 and 9 are lower than the lows of candles 6 and 7. So now, I will combine what we have learned about Demark sequential and present a basic trading system based on these concepts. We will discuss the precise entry point for this system, the level of your Stop Loss order, and the price target that we should aim for.
In this specific example, we will discuss the bearish TD Sequential signal. Firstly, you need to have a bullish trend in place. Then we will need to get nine consecutive periods that each close higher than the period four candles earlier. You should place your Stop above the last high of the current bullish trend. And since we have a custom MT4 indicator already available, we have a new method to test and trade upon. TD Sequential is designed to identify trend exhaustion points and keep you one step ahead of the trend-following crowd.
I haven't actually had a chance to put this one to the test. It's been sitting in my archives and if not for a request from a trader recently, I'm not sure when I would have actually returned to it again. Even I have not been able to fully understand the rules based on those 2 pdf files.
As per my understanding, once 9 consecutive bars have formed a trade setup, then a countdown starts and we take trade after the perfected 13th bar, right?? So, we have to wait for both the correct setup to form followed by a 13 wave coundown before actually initiating a trade based on this indicator? Can you please throw light on this? I have the book on daytrading options by the DeMarks.
The authors indicate that the sequential setups can be traded by themselves as long as the qualifier related to the 6th bar is met.
Otherwise, you use the countdown method. They say the methods can be used in any time frame even 1 minute , but should be done so within the context of a trend in a longer time frame. There is also a risk that the bar labelled "9" may not be the last in the sequence.
I think a test is required to determine the ratio of profitable trades, in different time frames. Active traders Poll - share your live experience or read what others have to say. Forum What is Forex?
Quote about TD Sequential method: be a forex trader’s most valuable asset. TD Sequential is designed to identify trend exhaustion points and keep you one step ahead of the trend-following crowd." MT4 custom indicators: speproin.tk4 speproin.tk4. TS sequential rules: speproin.tk TD. TD Sequential Indicator for forex trading with cAlgo and cTrader. Mar 30, · TD Sequential + CCI. Greetings to all forex-tsd members. Is it possible to make a combination between TD Sequential and the Commodity Channel Index, i mean that the TD Sequential will use the CCI formula to calculate the price bars? respectfully yours. TD CoMBO and TD Sequential.