Thomas DeMark Sequential System

[Smart_trade]

Smart_trade,
Is in it, be the 8th countdown bar as qualifier for counting 13 complete countdown bar.

thanks

Good observation, manikwadhwa....I was waiting for someone to pickup this point. I am happy that you did with your keen observation.

The count down qualifier says the close of the 13th bar be greater than close of 8th count down bar. But that is in normal situation where the 8th bar will generally make a interim price high. In our case , 8th bar is much below interim price high which is done in 6th bar.

I am quoting Thomas DeMark himself from his book " Demark on Daytrading Options" as under :

" Why must the 13th bar be greater than /less than 8th bar ? We have found that 8th bar of the countdown phase is typically recorded near an interim price high or an interim price low. Therefore the final count of the countdown series can usually be ensured of coming in near the high or low of the move by comparing it to the eighth count."

In our case the interim high is on 6th bar and 8th bar is well below the interim high, that is why I am considering 6th bar and not 8th ....but conditionwise you are right , it is 8th bar.

Smart_trade

 

[Smart_trade]

hello smart traderji....

i went through the entire thread on thoma's sequential system.... and i came to know what is countdown... reversals... set up and other terms....

2 things i fail to get are intersection and how to choose if there are 2 setups in the same direction....

as u have rightly pointed out that it is very difficult to wait for something to learn... i am getting now impatient and want to know in simple language how to know if intersection has taken place...

i desperately request you to kindly take 2mins and write it for me... i am sorry for the childish behavior and if this has caused you any inconvenience....

thank you

eagerly waiting...

also there seems to be an another system that is "combo"... i just found the charts and word combo used again and again... i didnt came across the explanation or afl of this combo system... please give details on combo where in i could only know is that countdown doesnt starts from 1 but is continued from 9 itself... is there any other specific afl for this system then pls do share....

thanks a ton....

i sorted out the stochastic question so u can pls igonre that....

Hello Ritesh,

Intersection ensures that the brakes are applied on market activity and we dont apply sequential in run -a- way phase. Intersection requires that in case of sell set up , the low of the set up bar 8 or 9 be less than or equal to the high 3 or more trading days earlier , upto and including the first day of the set up.

If the intersection takes place on 8th or 9th bar, the count down is started from 9th set up bar meaing 9th set up bar can be first countdown bar if it satisfies the countdown conditions.

Combo is a sister system of sequential where the countdown is started from first day of the set up and combo conditions are different , you need to study those.

Hope the above clarifies your doubts.

Smart_trade

 

[ritesh.bafna88]

okay now i understood.... awesome...

what are these TDST lines... are they kind of a range?

in the post of manikwadhwa where u wrote abt confirming the 13th bar with 8th bar is it essential?

where can i get "combo" studies...?

hearty thanks....

 

[ritesh.bafna88]

pls look at the chart and confirm my application is proper or not... if it is then countdown starts at 9th bar... so now the 9th bar is bar 1 of countdown... right?

thanks

 

[Smart_trade]

Buy set up is correct. The intersection happened on both 8th and 9th bars. Now from 9th bar onwards start buy count down. See after 9 set up bars the market went sideways by "Power of 9".

Smart_trade

 

[ritesh.bafna88]

Buy set up is correct. The intersection happened on both 8th and 9th bars. Now from 9th bar onwards start buy count down. See after 9 set up bars the market went sideways by "Power of 9".

Smart_trade

so now 9th is the 1st countdown bar... the bar after 9th becomes 2nd countdown bar...?

 

[Smart_trade]

so now 9th is the 1st countdown bar... the bar after 9th becomes 2nd countdown bar...?

Yes. The 9th bar is a first countdown bar, the bar after 9th bar is a second count down bar....these countdown bars are not consecutive. There will be gaps between them as every successive bar does not fulfill countdown condition of close <= low 2 bars back.

Smart_trade

 

[ritesh.bafna88]

are the countdown bar right?

 

[ritesh.bafna88]

i hope your thanks means im on the right track!!!

 

[Smart_trade]

i hope your thanks means im on the right track!!!

Yes , you are on right track.

Smart_trade