Thomas DeMark Sequential System

Hi smart trader, thanks for the reply. I thought so! :clap:
It seems that you know your TD Sequential very well.:thumb:
another thing that I was wondering about is the qualifier that determine if a setup can begin: the close of the bar before bar no. one must be greater than or equel to the close 4 bars back for a buy setup to begin.

my question is in relation to the close 4 bars back. Is that 4 th bar counted from current period (period - 4) or is that counted from 4 bars before the bar before bar no. 1 (period-1-4).

Sounds bid confusing, but I hope you'll understand what I mean.

Thanks
John
 
Hi smart trader, thanks for the reply. I thought so! :clap:
It seems that you know your TD Sequential very well.:thumb:
another thing that I was wondering about is the qualifier that determine if a setup can begin: the close of the bar before bar no. one must be greater than or equel to the close 4 bars back for a buy setup to begin.

my question is in relation to the close 4 bars back. Is that 4 th bar counted from current period (period - 4) or is that counted from 4 bars before the bar before bar no. 1 (period-1-4).

Sounds bid confusing, but I hope you'll understand what I mean.

Thanks
John
Hi John,

The first part in bold is nothing but a process of setting a counter to zero...so that set up can start.

The second part in bold is suppose the current completed bar is called T , we have to compare close of T with close of (T-4 )th bar or period -4 in your example.

Happy Trading...

Smart_trade
 
Hi i have been watching ur views on tdst below is the afl i use for stocks & commodities. I do not use traditional way of trading with tdst SO I REMOVED SOME PART OF ORIGINAL AFL
I only use blue & red lines if price is below both sell if above buy as time progresses before reversal or retracing there is a pause in market {a very tiny small range } exact there you will find one of these lines will come & hug the price then you should look to exit there or use any other indicator for finding target or exit.

LITTLE PROBLEM FOR ME I DO NOT KNOW HOW TO DO SCAN IT IS IMPOSSIBLE TO KNOW HOW MANY STOCKS ARE BELOW BOTH LINES OR
ABOVE BOTH LINES I HAVE TRIES TO POST IMAGE ... BUT COULD NOT.. SORRY
BELOW IS THE AFL
I NEED SIMPLE THING
WHEN PRICE BELOW BOTH RED & BLUE LINES SELL
WHEN PRICE BUY ABOVE BOTH RED & BLUE LINES BUY
THNKS IN ADVANCE

THIS IS MY AFL

_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
_SECTION_END();

_SECTION_BEGIN("PVTD ");
// Parameters
tdstsa = 0;
tdstba = 0;
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
//********************************************** PVTD Points********************************************************************/
function PVTD_Supply()
{
return ( H > Ref(H, 1) AND H > Ref(H, -1) AND H > Ref(C, -2));
}
function PVTD_Demand()
{
return ( L < Ref(L, 1) AND L < Ref(L, -1) AND L < Ref(C, -2));
}
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
// *********************************************** TD Sequential************************************************************/
// *** Buy Signal ***
//nine consecutive days closes less than the close four days earlier
Con = C < Ref( C, -4);
Buy9Bars = BarsSince(BarsSince(Con));
Buy9Signal = Buy9Bars == 9;

// *** Requirements ***
//The first day of the nine-day must be preceded by a close day immediately before it that is greater than OR equal to the Close four days earlier
Con = Ref(C, -9) >= Ref(C, -13);
Buy9Req = Buy9Signal AND Con;

// *** Intersection ***
// the high of either day 8 or day 9 is greater than or equal to the low three, four, five, six, OR seven days earlier
Con1 = (H >= Ref(L, -3)) OR ( Ref(H, -1) >= Ref(L, -3));
Con2 = (H >= Ref(L, -4)) OR ( Ref(H, -1) >= Ref(L, -4));
Con3 = (H >= Ref(L, -5)) OR ( Ref(H, -1) >= Ref(L, -5));
Con4 = (H >= Ref(L, -6)) OR ( Ref(H, -1) >= Ref(L, -6));
Con5 = (H >= Ref(L, -7)) OR ( Ref(H, -1) >= Ref(L, -7));

Buy9Intr = Buy9Req AND (Con1 OR Con2 OR Con3 OR Con4 OR Con5);
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
// *** Sell Signal ***
//nine consecutive days closes greater than the Close four days earlier.
Con = C > Ref( C, -4);
Sell9Bars = BarsSince(BarsSince(Con));
Sell9Signal = Sell9Bars == 9;

// *** Requirements ***
//The first day of the nine-day must be preceded by a Close day immediately before it that is less than the Close four days earlier
Con = Ref(C, -9) < Ref(C, -13);
Sell9Req = Sell9Signal AND Con;

// *** Intersection ***
//the low of either day 8 or day 9 is less than or equal to the high three, four, five, six, OR seven days earlier
Con1 = (L <= Ref(H, -3)) OR ( Ref(L, -1) <= Ref(H, -3));
Con2 = (L <= Ref(H, -4)) OR ( Ref(L, -1) <= Ref(H, -4));
Con3 = (L <= Ref(H, -5)) OR ( Ref(L, -1) <= Ref(H, -5));
Con4 = (L <= Ref(H, -6)) OR ( Ref(L, -1) <= Ref(H, -6));
Con5 = (L <= Ref(H, -7)) OR ( Ref(L, -1) <= Ref(H, -7));

Sell9Intr = Sell9Req AND (Con1 OR Con2 OR Con3 OR Con4 OR Con5);
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
if(StrToNum(NumToStr(Buy9Intr))) Sell9Intr = False;
if(StrToNum(NumToStr(Sell9Intr))) Buy9Intr = False;
BuySignal = Flip(Buy9Intr, Sell9Intr);
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
// *** Buy Countdown ***
//With respect to a pending Buy Signal, the close must be less than the low two days earlier;
Con = C < Ref(L, -2);
Buy13Count = Sum(Con AND BuySignal, BarsSince(Buy9Intr));
Buy13Signal = Buy13Count == 13;

/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
// *** Sell Countdown ***
//with respect to a pending Sell Signal, the Close must be greater than the High two trading days earlier.
Con = C > Ref(H, -2);
Sell13Count = Sum(Con AND NOT BuySignal, BarsSince(Sell9Intr));
Sell13Signal = Sell13Count == 13;
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
//*********************************************** PVTD Plotting area *************************************************/
Plot(C, "", IIf(O>=C, colorRed, colorGreen), styleBar);
PlotShapes(IIf(Buy9Intr OR Sell9Intr, shapeDigit9, shapeNone),colorBlue, 0, H,20);

Sell = Sell13Signal AND NOT BuySignal;
Buy = Buy13Signal AND BuySignal;
Sell = ExRem(Sell, Buy);
Buy = ExRem(Buy, Sell);
PlotShapes(Sell*shapeDownArrow, colorYellow, 0, H, -H*.001);
PlotShapes(Buy*shapeUpArrow, colorBrightGreen, 0, L, -L*.001);

if(StrToNum(NumToStr(BuySignal)))
bgColor = ColorRGB(0,66, 2);
else
bgColor = ColorRGB(66,2, 0);
SetChartBkGradientFill( colorBlack, bgColor);
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
// ---------------->>>> Code from Dave <<<----------------------
//

tdstba =Cum(0);
tdstb = Null;
HHV9 = HHV(H,9);
for (i = 0; i < 10; i++) tdstba = Null;

for( i = 10; i < BarCount; i++ )
{
if (Buy9Bars == 9)
{
HHV_b = HHV9;
if (HHV_b > C[i-9])
tdstb = HHV_b;
else tdstb = C[i-9];

for (j = 0; j < 9; j++ )
tdstba[i-j] = tdstb;
}
else tdstba = tdstb;
}

tdstsa =Cum(0);
tdsts = Null;
LLV9 = LLV(L,9);
for (i = 0; i < 10; i++) tdstsa = Null;

for( i = 10; i < BarCount; i++ )
{
if (Sell9Bars == 9)
{
LLV_b = LLV9;
if (LLV_b < C[i-9])
tdsts = LLV_b;
else tdsts = C[i-9];

for (j = 0; j < 9; j++ )
tdstsa[i-j] = tdsts;
}
else tdstsa = tdsts;
}
Plot(tdstba, "PVT B", colorBlue,styleStaircase | styleThick|styleDots);
Plot(tdstsa, "PVT S", colorRed,styleStaircase | styleThick|styleDots);


/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Title = "{{DATE}} - "+Name()+" ("+ FullName()+ ") - "+" Open="+O+",
High="+H+", Low="+L+", Close="+C+StrFormat(" (%.2f %.1f%%)
",IIf(ROC(C,1)==0,0,C-Ref(C,-1)),SelectedValue( ROC( C, 1 )))+
"\n"+EncodeColor(colorBlue) +"TDST Buy = " +WriteVal(tdstba, 5.2) +"
"+EncodeColor(colorRed) +"TDST Sell = " +WriteVal(tdstsa, 5.2)+
"\n"+EncodeColor(colorGold)+WriteIf(BuySignal, "(Buy Signal
Active:"+Buy13Count, "(Sell Signal Active: "+Sell13Count)+")";

_SECTION_END();

_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
_SECTION_END();
 


Posting Nifty Futures daily chart with Sequential Sell set up and Count Down markings on it.....it will be interesting to see how the market negotiates next 3-4 days and whether the trend exhausts or the recycling takes place and the trend continues.

Smart_trade
 

sanjosedesi

Well-Known Member
Hi ST, how are you doing, long time since I visited, but been trying demark and that brought me here.

Could you provide your assessment on HUL? As per my assessment, I bought it today on daily charts since it was a near perfect setup and did not break the tdst support so as soon as it touched the support, I took it. Will be curious to see your opinion.

Second question - perfect setup and countdown comes very rarely, at least on daily charts. However, if you track a bunch of scrips, you might be able to find one evert few weeks (or days). Were you ever able to automate these using amibroker or do you go by visual inspection?

Thanks, SJD
 
Hi ST, how are you doing, long time since I visited, but been trying demark and that brought me here.

Could you provide your assessment on HUL? As per my assessment, I bought it today on daily charts since it was a near perfect setup and did not break the tdst support so as soon as it touched the support, I took it. Will be curious to see your opinion.

Second question - perfect setup and countdown comes very rarely, at least on daily charts. However, if you track a bunch of scrips, you might be able to find one evert few weeks (or days). Were you ever able to automate these using amibroker or do you go by visual inspection?

Thanks, SJD
Hi SJD,

Happy to see you after a long time....I am doing fine and trust that you are doing great too...

I am not too bullish on HUL's chart. The stock is showing reversal formations. It had completed a buy set up too.It is holding the Sell TDST so far but when other stocks are attempting new highs, HUL completing a buy set up is not a good sign.

It may hold at the TDST line and do a bit of upmove along with other market, but if the overall market starts correcting, HUL will crack so if it closes below the TDST, you get out of your position. In my view the downmove has already started in HUL...so excercise caution.

As usual I reserve my right to be totally wrong on my analysis and market may do exactly opposite :D

I have not automated Sequential as it is a long tern system, I am happy to count it .

I will be curious to see how HUL does in days to come...keep us informed on how you traded it....

Happy Trading,

Smart_trade
 

Bewinner

Well-Known Member
Hi ST,

May be I rarely interacts with you and even if it is trade related most of the time I remain mute...But I like your post and view...
I have a request as u just posted daily chart on nifty and with TDST...It's a request the if possible and if ur time permits then could u please post this daily chart along with ur analysis with this TDST?
 

sanjosedesi

Well-Known Member
Hi SJD,

Happy to see you after a long time....I am doing fine and trust that you are doing great too...

I am not too bullish on HUL's chart. The stock is showing reversal formations. It had completed a buy set up too.It is holding the Sell TDST so far but when other stocks are attempting new highs, HUL completing a buy set up is not a good sign.

It may hold at the TDST line and do a bit of upmove along with other market, but if the overall market starts correcting, HUL will crack so if it closes below the TDST, you get out of your position. In my view the downmove has already started in HUL...so excercise caution.

As usual I reserve my right to be totally wrong on my analysis and market may do exactly opposite :D

I have not automated Sequential as it is a long tern system, I am happy to count it .

I will be curious to see how HUL does in days to come...keep us informed on how you traded it....

Happy Trading,

Smart_trade
Thanks ST, half of my trade plan was a calculated "bet" on the overall market getting pumped up by US election results. I am in many other positions for different reasons but this was the only near perfect SETUP out of 50 odd scrips I monitor so i had to take it (just going by rules). And sure - I do intend to exit on the first sign of trouble but as of now as long as TDST support holds, I am holding. Let's see which way we go ...

I am doing fine myself. Lot more reading, charting and trading, and unfortunately a lot less conversing or forum'ing.
 

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