![]() ![]() Each candle’s close is compared to the close of 2 candles earlier instead of the 4-candles of the Setup Phase.There is a 13-count instead of the 9-count of the Setup Phase.Why the Countdown phase is different than the Setup phase? Each candle’s close is compared to a close of two candles earlier. The second phase or else the TD Countdown commences after the TD Setup phase in already confirmed and completed. If the Setup is perfect, anticipate 3-4 strong candles in the opposite direction. Ideally, the 9th candle should close near its TDST line. When the 9th candle is confirmed, given that none of the Setup candles crossed its line of TDST Support/Resistance, there is a high probability for a trend reversal. If the pattern plays out, the pullback will be significantly strong during the first 3-4 candles after the confirmation of number ‘9’. The stop-loss should be above or below the highs/lows of the 9th candle. The number ‘9’ is ideal for entering a trade opposite to the established trend. If one of the above patterns is completed there is a high probability that the market will reverse in the opposite direction. For the perfect setup, the lows of the 8th and 9th candle must be lower than the lows of the 6th and 7th candle.If at any point, a candle closes higher than the candle four periods earlier the TD setup is immediately canceled.In other words, when 9 consecutive candles closed lower than the candles of 4 periods earlier. The point of reversal comes when the TD Sequential plots the number ‘9’ on the bottom of a candle. And this rule is applied for all the following candles. In a bearish trend, the initial starting number ‘1’ is plotted if a candle closes lower than the close of a candle four (4) periods ago. For the perfect setup, the highs of the 8th and 9th candle must be higher than the highs of the 6th and 7th candle. ![]() If at any point, a candle closes lower than the candle four periods earlier the TD setup is immediately canceled.In other words, when 9 consecutive candles managed to close higher than the candles of 4 periods earlier. The point of reversal comes when the TD Sequential plots the number ‘9’ on top of a candle. Consequently, the second number ‘2’ is plotted only if the second candle manages to close higher than the close of the candle four (4) periods ago. This four-period rule is key for the calculations of the TD Sequential as it repeats again and again. This is a brief explanation of the TD Setup phase during a bullish and bearish market.Īn initial starting number ‘1’ is plotted if a candle manages to close higher than the close of a candle four (4) periods ago. TDST lines are support and resistance price levels that represent the extremes of the first bar in the Setup phase.Ĭhart: Applying the TD Sequential on EURUSDĪs we can see in the above chart, the TD indicator generates TDST lines which represent support and resistance. These numbers follow a specific ascending order starting from 1 and aiming to complete a 9 count in the Setup Phase and a 13 count in the Countdown Phase. ![]() When the TD Sequential is applied to a chart, it adds various numbers on the top or bottom of each candle. Visualizing and Explaining the Tom Demark Sequential If the 13-candles count is completed, the TD Sequential identifies a point of a likely top or bottom. The TD Countdown includes a 13-candles count. The second phase is valid only if a TD Setup is already established. (B) The TD Countdown (Trend Exhaustion Phase) If the 9-candle count is completed, the TD Sequential identifies a point of a likely top or bottom. The TD Setup phase takes place after a Price Flip and includes a 9-candle count. TD Sequential includes two phases that emerge after a Price-Flip: ![]() (6) The rules of TD Sequential can be easily modified, therefore, there are many variations (5) The TD Sequential also generates support and resistance levels (TDST lines) (4) Timewise, the TD Sequential is ideal for the early recognition of key market turning points (3) The TD Sequential will work only in Japanese Candlesticks or a Bar chart (2) It includes two phases: The setup phase (9-count) and the Countdown phase (13-count) (1) The TD Sequential can be used in any timeframe and in any financial-traded asset However, it is more reliable on H4 timeframes, and above. TD Sequential can be used in any timeframe and in any market conditions. It is a counter-trend tool that aims to solve the problem of several TA indicators that are profitable during trending markets but perform very poorly in ranging markets. The TD (Tom Demark) Sequential is a powerful tool designed to identify the exact time of trend exhaustion and price reversal. How to Trade with the TD Sequential (Tom Demark) ![]()
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