Thomas DeMark Sequential System

[Smart_trade]

Hello ST,

You mean to say, it is going to happen like this?

On 6th Oct, 2013, Nifty close was < last 4 sessions.
Now on 7th Oct, 2013, nifty close should be > last 4 candles (i.e. 5317), which means TD Sell setup will begin?

I was going thru "DeMark_Indicators-Jason_Perl.PDF where i read this

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Page 4
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A Bullish TD Price Flip occurs when the market records a close less than the close four bars before, immediately followed by a close greater than the close four bars earlier.

Once the bullish TD Price Flip occurs, a TD Sell Setup can begin.
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ST, others

I am new to TDST, please correct me if i am wrong.

Hi T 4 J,

Buy set up has begun and we completed 2 days. It has to give us 9 consecutive buy set up bars and then we say buy set up is complete. It may do 2-3 bars and give a flip again so that the set up has to start afresh. Once we have a sell signal, we will atleast expect the market to do buy set up if the sell signal works out.

We will see how market unfolds.

Smart_trade

 

[trade4joisar]

Hi T 4 J,

Buy set up has begun and we completed 2 days. It has to give us 9 consecutive buy set up bars and then we say buy set up is complete. It may do 2-3 bars and give a flip again so that the set up has to start afresh. Once we have a sell signal, we will atleast expect the market to do buy set up if the sell signal works out.

We will see how market unfolds.

Smart_trade

Sorry, I have limited knowledge, so might have more questions

So when you say buy setup bars, means market will go down and once 9 bars are completed, then we will have go long from that point right ? and same goes for Sell setup bars. ?

When you say "set up has to start afresh", what do you mean, you mean when it give flip, we need to sell from that point ?

 

[trader15]

It does not make any change. In Nifty Index chart, we have completed 13 sell countdown bars and we are in sell mode as of now. The sell is not triggered as yet as we need a day where closing is less than opening in Nifty ( Index, not futures) and close of that day will be sell point. Our stoploss will be at 6309.65 +73.15 =6382.80 and if the Nifty Index closes above this level and the next day high of that level is taken out, the short trade is stopped out.

When there is a large difference between cash and futures, I prefer to get confirmatory signal on cash charts in addition to futures.

In November NF continuous futures chart it has completed 13 count down bars on 1-11-2013 and now we have to wait for a downclose day to trigger a sell signal.So for NF November futures the stoploss level will be at 6425.85

Smart_trade

Little confused here:-

Have gone through the basics of TDST by you in day/swing trade thread. Still in absorbing mode.

Have also understood your comment on the long term reversal aspect of this setup.

Where I'm confused is that in this comment we are talking about Sell Mode, then in your recent comments we are talking about buy setup.

So what happened to Sell Setup. As per all the markings on chart by nirav, Sell mode got triggered.

No where is buy setup coming into picture within the Sell Mode.

Does this mean that Sell Mode is not valid any longer.

or Does this mean Sell mode is valid, but within the larger sell we have buy mode

 

[trader15]

Hi T 4 J,

Buy set up has begun and we completed 2 days. It has to give us 9 consecutive buy set up bars and then we say buy set up is complete. It may do 2-3 bars and give a flip again so that the set up has to start afresh. Once we have a sell signal, we will atleast expect the market to do buy set up if the sell signal works out.

We will see how market unfolds.

Smart_trade

In my previous comment, I'm referring to this one. How is buy setup begin when we are in Sell Mode.

One understanding could be: We are in Sell Setup, we should be selling, and then also looking out for buy setup, to indicate the reversal and get back into buy mode.

If this understanding is correct, than we should be selling. Then u also said in another comment that we should not initiate sell as market may move sideways or go even higher.

So net net : Is this correct:

a) We are in sell mode: With sell setup complete
b) We are now looking for buy setup : To indicate reversal (This may happen
in 1 go or multiple moves, depending on if pattern holds or we start over
again)
c) Stop Loss for TDST has to be wide: As this is positional trade : may give
300-500 points: The swings within it may be 100-150 point wide, but
they are insignificant and part of system
d) As long as stop losses are not hit, we consider we are in particular setup :
Currently Sell Mode.

How do we get the Stop Loss: I see you using magic number 73 and then 6450 for NF

Thanks for your patience. I know you have shared tons of info earlier, and I'm trying to do my homework before bugging you.

 

[trade4joisar]

Hi T 4 J,

Buy set up has begun and we completed 2 days. It has to give us 9 consecutive buy set up bars and then we say buy set up is complete. It may do 2-3 bars and give a flip again so that the set up has to start afresh. Once we have a sell signal, we will atleast expect the market to do buy set up if the sell signal works out.

We will see how market unfolds.

Smart_trade

Hello ST / others,

I was going to TDST PDF, Can you please confirm understanding?

We are into "sequence—of nine consecutive closing prices less
than the closing price four bars earlier" which started on 6th Nov, 2013.

Till 14th Nov, we have completed 7 consecutive candles without interupption.
Now to continue this, we need close of monday should below (else TD buy setup will be cancelled)
* 6079 i.e. 11th Nov, 2013 closing price
OR
* 6018 i.e. 12th Nov, 2013 closing price

I have this query because i am confused in while counting last 4 candles current candle should be counted or not. If current is not to be counted then 11th candle has to be consider else 12th one.

And once TD buy setup reaches nine, buy countdown will begin.

Please correct me if i am wrong.

 

[Smart_trade]

Hello ST / others,

I was going to TDST PDF, Can you please confirm understanding?

We are into "sequence—of nine consecutive closing prices less
than the closing price four bars earlier" which started on 6th Nov, 2013.

Till 14th Nov, we have completed 7 consecutive candles without interupption.
Now to continue this, we need close of monday should below (else TD buy setup will be cancelled)
* 6079 i.e. 11th Nov, 2013 closing price
OR
* 6018 i.e. 12th Nov, 2013 closing price

I have this query because i am confused in while counting last 4 candles current candle should be counted or not. If current is not to be counted then 11th candle has to be consider else 12th one.

And once TD buy setup reaches nine, buy countdown will begin.

Please correct me if i am wrong.

Current candle is not to be counted, so excluding current candle, we have to go 4 candles back and compare current candle's close eith that of close of 4 candles back..

After completion of 9 bar setup, the sequential countdown starts. It can start from bar no 9 of setup provided the intersection has happened on 8th or 9th bar .

If in 9 setup bars the earlier TDST line is not broken, many times market reverses at 9 setups and does not go to countdown.If TDST is broken, expect the market to proceed to 13 countdown bars.

Smart_trade

 

[trade4joisar]

Current candle is not to be counted, so excluding current candle, we have to go 4 candles back and compare current candle's close eith that of close of 4 candles back..

After completion of 9 bar setup, the sequential countdown starts. It can start from bar no 9 of setup provided the intersection has happened on 8th or 9th bar .

If in 9 setup bars the earlier TDST line is not broken, many times market reverses at 9 setups and does not go to countdown.If TDST is broken, expect the market to proceed to 13 countdown bars.

Smart_trade

Hello ST,

Thanks for your quick reply.

So about counting, we are done with 7 candles ?

so we will complete Buy setup on Tuesday (ofcourse if monday close is
below 6079 and Tuesday close below 6018) ?

And then as you said, either we will start with countdown before we can go long OR it can start from Wednesday.

Please correct me if i am wrong, because i am having very basic knowledge of TDST right now.

Can you also share previous TDST Resistance and support? as it says if broke then it extend the ongoing trend.

 

[VIKAS 21]

ST Sir,

Trying to understand this very wonderful system.....

As per my understanding there are three phases in the system

1. Buy setup/Sell set up

2. Intersection

3.countdown

After completion of Sell set up( 9 Consecutive higher close of four bars earlier),

next phase comes of intersection( either 8 th or 9th bar or first bar after set up have their low equal to or high of three bars or more earlier..)

for Sell countdown:which closes greater than or equal to the High 2 bars earlier..

I have tried to mark the chart as per my understanding of the system, please correct if wrong...

 

[VIKAS 21]

Sell zone/Buy zone after finished TD Sequential – find the bar which records the highest high/lowest low for the countdown, find the range of the bar plus gaps and project it from the high/low of the bar. After finished TD Sequential/Combo the price should make a top in this zone not later than 12 price bars after bar 13 for the countdown. If the market breaks this level the signal is negated and we are witnessing renewed strength.

 

[forexsolution4u2013]

Hi
Smart _trade
I have been trading sequential in forex for long time
I am interested in this but no knowledge of coding so will appreciate if you can make some changes for short term to show number 5 on bull and bear set up but to use on 15 M or 5 M see the reulst you might like it as can make some profit from intraday trading I am using for forex