Thomas DeMark Sequential System

[Smart_trade]

I swear I'd seen a TD Seq Buy appear about an hour back on todays daily ...

For some reason, its disappeared

Today, NF completes the 9 of the Buy setup ...
Need to see what the power of 9 does tomorrow.

Power of 9 says that the market will make a short term bottom on 8th,9th or 10th day. In our markets short term bottom ( made yesterday ie on 8th day ) seem to be in place because we had a successful test of that today. We may get a couple of days sideways/up move.

Smart_trade

 

[trade4joisar]

Power of 9 says that the market will make a short term bottom on 8th,9th or 10th day. In our markets short term bottom ( made yesterday ie on 8th day ) seem to be in place because we had a successful test of that today. We may get a couple of days sideways/up move.

Smart_trade

Hello ST sir,

So does it means couple of days sideways/up then up move OR again down move ?

 

[Smart_trade]

Hello ST sir,

So does it means couple of days sideways/up then up move OR again down move ?

The chances of downmove are more as we have cracked a TDST support line so most probably we will complete sequential 13 buy countdown bars.

Having said the above, markets short term trend has changed to up from yesterday so we should be trading from long side till the trend reverses.

ST

 

[trade4joisar]

The chances of downmove are more as we have cracked a TDST support line so most probably we will complete sequential 13 buy countdown bars.

Having said the above, markets short term trend has changed to up from yesterday so we should be trading from long side till the trend reverses.

ST

Can you show it in chart please?

How to identify trend reversal from short term up to down? at what level?

 

[trade4joisar]

Buy set up starts when close < close 4 bars ago and the earlier bar's close is >close 4 bars before the earlier bar ( this is called initialising ) and then we have 9 consecutive bars where close < close 4 bars ago. This is the minimum requirement of Buy set up but buy set up continues till this relationship of close < close 4 bars ago is continued. So the set up can have 10,11,12 or any number of bars.

Regarding what I said on 1st Nov, there seems to be some confusion. I am normally not likely to make such an error but please give me the link of that post , I will see if there is any typo or wrong context.

Smart_trade

No. The green candle before the red candle marked as 1 is a initialization candle. The first set up candle is the red candle marked as 1 so we have completed 9 bars buy set up today.

Smart_trade

Hello ST sir,

i am confused here, can you please clarify?

 

[Smart_trade]

Hello ST sir,

i am confused here, can you please clarify?

There should not be any confusion. Try to understand why initialization is required. It is required just to make sure that we dont start the setup counting from anywhere and we start it from 1st day of the set up as the preious day to this day is a flip day. Otherwise even 4th or 5th day of the set up satisfies all set up conditions but we dont start the set up from there. The green candle is the candle where c>c-4 and the red candle marked as 1 is a first candle out of 9 consecutive candles where c<c-4 which is a necessary condition for a buy set up.So the day before the red candle is an initialization day.

ST

 

[trade4joisar]

Hello ST sir,

Can you please reply to my previous query?

 

[bapu4]

There should not be any confusion. Try to understand why initialization is required. It is required just to make sure that we dont start the setup counting from anywhere and we start it from 1st day of the set up as the preious day to this day is a flip day. Otherwise even 4th or 5th day of the set up satisfies all set up conditions but we dont start the set up from there. The green candle is the candle where c>c-4 and the red candle marked as 1 is a first candle out of 9 consecutive candles where c<c-4 which is a necessary condition for a buy set up.So the day before the red candle is an initialization day.

ST

Hi Sir,
The confusion is that we say the 4th candle ,now no one tells how to count the candles,is it including the candle that is has formed or the candle that is forming ?which one we should take as the 1st candle because counting the candles wrong way changes the whole game!
Tx

 

[Smart_trade]

Hi Sir,
The confusion is that we say the 4th candle ,now no one tells how to count the candles,is it including the candle that is has formed or the candle that is forming ?which one we should take as the 1st candle because counting the candles wrong way changes the whole game!
Tx

Comparison is always done when the candle is complete and not when it is being formed.

Now taking example of daily candles, after today's candle is formed, at end of the day we number that candle as candle 0, then previous candle as candle -1, then precious to candle -1 as candle -2 , then candle -3 and -4 so we compare closing price if candle 0 with candle-4 to see whether that day qualifies for a set up day in the sequence of 9 consecutive days or not.

Smart_trade

 

[trade4joisar]

The chances of downmove are more as we have cracked a TDST support line so most probably we will complete sequential 13 buy countdown bars.

Having said the above, markets short term trend has changed to up from yesterday so we should be trading from long side till the trend reverses.

ST

Can you show it in chart please?

How to identify trend reversal from short term up to down? at what level?