Thomas DeMark Sequential System

Smart_trade · Dec 10, 2013

Very good mastermind007...

I saw in your last post you said count down gets cancelled if there is intersection between countdown bars and set up bars....there is no such condition. The condition is if any bar subsequent to setup completion closes above the TDST level of that set up, then set up and countdown gets cancelled. I thought I should clarify this point to avoid any confusion.

Smart_trade

mastermind007 · Dec 10, 2013

Above text is from Jason Perl's book on page 60.

What is precise difference between Point 3 and point 4. I mean, what does he exactly mean by "previous TD Combo Buy Countdown close"

Another phrase that are bit unclear are True High, True Low.

Did not know that definitions of few of those things were so simple

Code:

Camouflage = Close < Ref(Close, -1) AND Close > Open AND Low < Ref(LLV(Low, 2), -1); // And Low < TrueLow(...);
Clop = Open < Ref(Close, -1) AND Open < Ref(Close, -1) AND Close > Ref(Close, -1) AND Close > Ref(Close, -1);
Clopwin = Open > Min(Ref(Open, -1), Ref(Close, -1)) AND Close > Max(Ref(Open, -1), Ref(Close, -1));
OpenBuy = Open < Ref(Low, -1) AND Close > Ref(Low, -1);
TrapBuy = Open > Ref(Low, -1) AND Open < Ref(High, -1) AND Close > Ref(High, -1);

Smart_trade · Dec 10, 2013

mastermind007 said:

Above text is from Jason Perl's book on page 60.

What is precise difference between Point 3 and point 4. I mean, what does he exactly mean by "previous TD Combo Buy Countdown close"

Another phrase that are bit unclear are True High, True Low.

Did not know that definitions of few of those things were so simple

Code:

Camouflage = Close < Ref(Close, -1) AND Close > Open AND Low < Ref(LLV(Low, 2), -1); // And Low < TrueLow(...);
Clop = Open < Ref(Close, -1) AND Open < Ref(Close, -1) AND Close > Ref(Close, -1) AND Close > Ref(Close, -1);
Clopwin = Open > Min(Ref(Open, -1), Ref(Close, -1)) AND Close > Max(Ref(Open, -1), Ref(Close, -1));
OpenBuy = Open < Ref(Low, -1) AND Close > Ref(Low, -1);
TrapBuy = Open > Ref(Low, -1) AND Open < Ref(High, -1) AND Close > Ref(High, -1);

There is a difference between condition 3 and 4. Normally both get satisfied but in some cases only one gets satisfied and other is not satisfied so that bar does not become a combo countdown bar.

True high is high of the bar or the previous bar's close whichever is higher. True low is low of the bar or previous bar's close whichever is lower. They vary in case of bars opening with gaps.

Smart_trade

mastermind007 · Dec 11, 2013

Smart_trade said:

Guruji

I think we are talking of the same rule but in different words. The exact rule that I have implemented during Buy Countdown that can cause cancellation are

RULE #1 a Bearish Flip. (first bar of Sell Setup)

RULE #2 Close of current candle being higher than Highest High within Setup and all preceding countdown candles.

Now, since the murky subject of countdown cancellation has emerged, this is what I have collated thus far.

Demark mentioned it in his book (The New Science ....) on page 158 (2nd para) Statement .... "Two situations ... "

First condition given in the book is very simple to understand and implemented correctly. Second condition in talks about Recycling and I impement a conditional Recycling which decides whether or not to abandon countdown depending upon relative Length of the existing setup and the newly emerged setup of the same direction.

Next, Referring to a seemingly more recent document from Tom and Rocke Demark. Link to Document is here, starting from the last line on page 30 and carrying onwards to page 31, he said it thus

Further to that, a checklist (in post 243 of this thread) that was uploaded by Apurva says following.

Conditions mentioned in Apurva's checklist are actually redundant and boil down to only two (a) Close above Highest High OR (b) Close above Highest Close. Fortunately, from programming point of view, I can optimise further and only need to deal with only one of these rule for any candle to abort the Countdown.

There are few more rules that affect Countdown (deferment rule, 18 bar rule, 8-13 etc ...) from different sources that are mentioned in bit cryptic. I have implemented 'em but deploying them one by one into the AFL.

trade4joisar · Dec 12, 2013

Tata Steel
-------------

Yesterday price closed above previous 4 candle closing price
Today price closed below previous 4 candle closing price

Buy setup initialized, Now 9 sequential candles should closed below previous 4 candle price.

Let see how it goes

Please correct me if i am wrong.

mastermind007 · Dec 12, 2013

Downloaded and played with the grafster today and subsequently interacted with Peter (vendor @ grafster) which lead to improvement in cancellation as well as display logic. Got my chart matching 100% with Grafster.

Earlier I had been discarding the incomplete setup and cancelled countdowns not realizing the potential of a failed indicator in this case. Yes, I had read the line somewhere, but my overhead tubelight never went on until today.

I still discard the incomplete setups. I hope they aren't used too.

Meaning of shape's being plotted has not changed. Hiding Dashboard reveals the setup and countdown area at the bottom. First color is setup. once it plateaus, the countdown starts. Unless countdown rises above the setup, no need to worry.

Next, will figure out a way to render Combo.

mastermind007 · Dec 12, 2013

trade4joisar said:

t4j

Your observation about today's and yesterday's candle is correct but you will find that thing also holding true on 30th and 31st October.
Check and you will find C > Ref(C, -4) rules holding true between those dates also.

Most recent Sell Setup of tatasteel started on 31st October and completed/intersected on 13 November.

Currently, TD Sell Countdown has reached 12 as of 6 December.

trade4joisar · Dec 12, 2013

mastermind007 said:

Thanks for your reply.

I still need to learn lot in TDST, so there might be simple questions.

What do you mean here?

1. What do you mean by intersected here? 9 countdown completed by 8th candle gave intersection and all ? and then it was buy signal there ?

2. We still need to have countdown 13 which will be closed higher than 6th countdown ? and what is close of 6th countdown?

mastermind007 · Dec 12, 2013

trade4joisar said:

t4j

Download and read this small PDF to get the initial idea of the TDST.

After that, my recommendation to you would be read this thread from start. Thread started in 2008 and most of the rules are mentioned in first few pages itself. They've been repeated and S.T. da has provided answers from time to time and they're great to read.

All middle pages are routine stuff but do scan/visit each page at least once because from time-to-time, ppl have added few interesting things. Someone has also shared a book from PERL which I downloaded last week only.

I had purchased the paper copy of the original demark book before discovering its PDF online ...

trade4joisar · Dec 12, 2013

1st day of TataSteel was good after TDST initialization.

Today there was Buy setup initialization in NF and BNF as both were closed below 6260 and 11720 respectively i.e. (close of 6th Dec, 2013).

Let see how it goes.

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Thomas DeMark Sequential System

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