Thomas DeMark Sequential System

[kenneth]

Hi Smart Trader,

This is what I read for a count down

Countdown

After the intersection of the setup has occurred (but no sooner than the ninth bar for this setup), the Countdown begins.

For a sell (buy) setup the countdown reflects the relationship between the close and the high (low) two bars earlier. The closing price must be greater (less) than the high (low) two bars earlier. As soon as 13 such prices are recorded (not necessarily consecutive), a signal emerges.

The Countdown phase can’t complete earlier than in 12 bars after the setup (it is suggested that the ninth bar is also included in the countdown phase), but as a rule there are 15-30 bars between the setup and the completion of the Countdown phase.

Countdown and setup are cancelled in two cases:

1. if a reverse setup has developed;
2. cycling occurs, i.e. a new setup in the same direction direction develops.

In that case the original AFL identifies the 13th day count down correctly. Could you please give your opinion.

regards
Ken

 

[kenneth]

Lets watch the following stocks which have given 13 day count down

Ticker	Date/Time	Close	Risky Entry4dayC BUYH2 BUY	
ORCHIDCHEM8/22/2008	247.15	247.15	250.45	253.00	
PHILIPCARB8/22/2008	155.15	155.15	165.70	169.00	
SESAGOA	8/22/2008	154.50	154.50	173.15	168.00	
BOMDYEING8/22/2008	543.60	543.60	532.25	569.95	
SCI	8/25/2008	212.80	212.80	215.75	218.50

Regards
Ken

 

[Smart_trade]

Hi Smart Trader,

This is what I read for a count down

Countdown

After the intersection of the setup has occurred (but no sooner than the ninth bar for this setup), the Countdown begins.

For a sell (buy) setup the countdown reflects the relationship between the close and the high (low) two bars earlier. The closing price must be greater (less) than the high (low) two bars earlier. As soon as 13 such prices are recorded (not necessarily consecutive), a signal emerges.

The Countdown phase cant complete earlier than in 12 bars after the setup (it is suggested that the ninth bar is also included in the countdown phase), but as a rule there are 15-30 bars between the setup and the completion of the Countdown phase.

Countdown and setup are cancelled in two cases:

1. if a reverse setup has developed;
2. cycling occurs, i.e. a new setup in the same direction direction develops.

In that case the original AFL identifies the 13th day count down correctly. Could you please give your opinion.

regards
Ken

Hi Ken,

Countdown conditions listed by you are correct.I would add the following :

1) Countdown cannot start before 9 bars of Set up are completed.In other words the first countdown bar at earliest will be at 9th set up bar provided the intersection is done in 9th,8th or 7 th bar of set up.If not the countdown is started after the intersection happens.Note this happening in RPower graph I posted few posts back.Here intersection happened after 9 bars of setup and hence the countdown starting was delayed.

2) Recycling means that before 13 countdown gets over,a second set up developes in the same direction.Then the question is we have the countdown on the old set up or the new set up ? The answer is measure the pointwise distance travelled by both set ups.( here the distance is not upto 1st to 9 th bar of set up but setup continues till you get a flip ie set up it could be in 10th,11th 12 or sebsequent bars.

Now the rule is if the second set up length (pointwise distance travelled) is more than 1 st set up but less than 1.618 of the first set up ,then ignore 1st set up and start countdown on 2nd set up and if the length of 2nd set up is less than length of 1st set up or more than 1.618 of 1st set up then ignore second set up and continue the count down on 1st set up only .

Little confusing and complex ? Well would try to explain with a chart and marking on it after the mkt hours.

Best Wishes and Trade well !!!!

Smart_trade

 

[Apurv7164]

Gurus and Experts,

Being a Software QA analyst for last couple of year, I never trust/never have complete faith on any kind of code/formula/automated algorithm. They are never bug free, believe me!!!

To make ourselves more desciplined and to make manual intervention easy/faster, I have prepared small buy checklist for TD sequential which I would like to share with you. Also I need help from someone who can define check points for RECYCLING.

Once we all agree upon this checklist I will prepare same for Sell also.

Please be little considerate and spare sometime to review this (also give your comments to enhance this).

Checklist spread sheet is attached herewith.

Thanks,
Apurv

 

[Smart_trade]

friends... what exactly is recyling... kindly explain.. i think i am getting it wrongly

Dear Saurabh,

Pl read post no 164 which explains recycling.

Best Wishes,Tradewell !!!

Smart_trade

 

[Smart_trade]

Gurus and Experts,

Being a Software QA analyst for last couple of year, I never trust/never have complete faith on any kind of code/formula/automated algorithm. They are never bug free, believe me!!!

To make ourselves more desciplined and to make manual intervention easy/faster, I have prepared small buy checklist for TD sequential which I would like to share with you. Also I need help from someone who can define check points for RECYCLING.

Once we all agree upon this checklist I will prepare same for Sell also.

Please be little considerate and spare sometime to review this (also give your comments to enhance this).


Checklist spread sheet is attached herewith.

Thanks,
Apurv

Hello Apurva,

Saw yr chechlist. It is perfect .

Recycling I have explained in post no 164.Pl incorporate these conditions.

The entry on the price closing >close 4 bars ago is more safe but too late.Lot of move is lost before this happens.De Mark has suggested another entry which I find very good. It is as under :

On or After 13 th countdown bar,enter whenever the mkt closes above the open.

Also incorporate the TERMINAL COUNT It says that only for 13 th countdown day,the condition of close<low 4 days back is relaxed and made more liberal and the condition is the low <low 2 bars ago.

For Intraday charts,the set up condition is close<or= close 4 bars back.


Good job ,Apurva,Keep going !!!!


Best Wishes,Tradewell!!!

Smart_trade

 

[Smart_trade]

Lets watch the following stocks which have given 13 day count down

Ticker	Date/Time	Close	Risky Entry4dayC BUYH2 BUY	
ORCHIDCHEM8/22/2008	247.15	247.15	250.45	253.00	
PHILIPCARB8/22/2008	155.15	155.15	165.70	169.00	
SESAGOA	8/22/2008	154.50	154.50	173.15	168.00	
BOMDYEING8/22/2008	543.60	543.60	532.25	569.95	
SCI	8/25/2008	212.80	212.80	215.75	218.50

Regards
Ken

Hello Ken,

Just saw Bombay Dyeing daily chart.This chart is perfect and it has True High,Delayed intersection,Recycling,Terminal count etc all examples in this chart.Will post detailed markings after the mkt.My 13 th countdown buy is on 17-7-08 closing price of 538=40.

The first set up ( which started on 26-5-08 ) is larger than the second set up.So the countdown to be continued on 1st set up ignoring the second set up. This is NOT recycling.This is the mistake you are doing.Just having a second set up in the same direction does not result in recycling.Measure the length of the two set ups and see the conditions in my post no 164 for recycling conditions. Will post in details on this chart later!!!!

Best Wishes,Trade well !!!!


Smart_trade

 

[Smart_trade]

http://img513.imageshack.us/img513/7941/niftyfut5minvk6.jpg

I have posted yesterday's(26-8-2008) intraday Nifty Fut ( 5 min )chart with TDST levels marked on it. Observe that Nifty Fut did not go below Sell TDST at 4299 but went above a Buy TDST at 4327 confirming that it is in no mood to trend down but it wants to go up which it did till the day's end!!!Mkt speaks to us in its language,we just have to understand its language.

Best Wishes,Trade Well

Smart_trade

 

[Apurv7164]

Hello Apurva,

Saw yr chechlist. It is perfect .

Recycling I have explained in post no 164.Pl incorporate these conditions.

The entry on the price closing >close 4 bars ago is more safe but too late.Lot of move is lost before this happens.De Mark has suggested another entry which I find very good. It is as under :

On or After 13 th countdown bar,enter whenever the mkt closes above the open.

Also incorporate the TERMINAL COUNT It says that only for 13 th countdown day,the condition of close<low 4 days back is relaxed and made more liberal and the condition is the low <low 2 bars ago.

For Intraday charts,the set up condition is close<or= close 4 bars back.


Good job ,Apurva,Keep going !!!!


Best Wishes,Tradewell!!!

Smart_trade

Smart_Trade,

For recycling I really need your help in defining specific check points to be considered while taking decision of entry.

From concept I'm not able to define specific/critical check point.

Note: I have updated checklist about entry confirmation as suggested by you but will send you all once I complete it with Terminal count and Recycling check points.

Thanks,
Apurv

 

[arvind296]

hello everybody,
I want to test and trade sequential system. can somebody plz post metastock coding for it. i think coding is availabe for amibroker only in this fourm or i am missing something?
regards
arvind