Post on 29-Nov-2015
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Tom DeMark
Called “The Wizard's Wizard” by Jack Schwaeger
Has spent 28 years in the investment business
Consultant to George Soros, Paul Tudor Jones and currently Steve Cohn
Written several popular books on technical analysis
The TD Sequential is covered in “The New Science of Technical Analysis”
Jason Perl, “DeMark Indicators”, Bloomberg
DISCLAIMERThe techniques presented in this presentation are trading indicators and not trading
systems. The settings presented are not necessarily the ideal settings for these
particular indicators. Trading markets involves a high level of risk. Past performance
is no indication of future results. Market Studies Inc., the BLOOMBERG
PROFESSIONAL™, CQG Inc. and Thomson One services, and their principals and
representatives assume no liability for the accuracy, the construction, and the
application of these trading tools. These indicators are provided for educational
purposes only.
Copyright Market Studies Inc. 2009
DeMark Indicators ™ are name protected and trademarks of Market Studies Inc. Their
use by others is prohibited without the written permission of Market Studies Inc.
Objectively generated trade ideas
Identifies exhaustion tops and bottoms
Mechanical, mathematical, objective and
precise
TD Sequential™ - Benefits
TD Sequential™
Features
• Determines potential price trend exhaustion zones
• Anticipates prospective market tops and bottoms
Benefits
• Transact your strategies at more favorable price points
• Improve the entry or exit of your trade
TD Setup™ + TD Countdown™ = TD Sequential™
9
1
23
4
56
7
8
TD Buy Setup™
Setup
• Close (today) > Close (4 bars ago)
• Then Close (today) < Close (4 bars ago)
• Minimum of 9 such consecutive closes
9
1
23
4
56
7
8
TD Buy Setup™ Correction
After a completed TD Buy Setup™, expect 1-4 bars
correction (either sideways or against the trend of the
Setup)
9
1
23
4
56
7
8
TD Setup Qualifier™
Qualifier
The low of bar 8 OR bar 9 of
the TD Buy Setup needs to be
below the lows of bars 6 AND 7
Note that Setups may reach the minimum requirement and
evolve into Countdowns without being qualified
9
1
23
4
56
7
8
Countdown
• Close (today) <= Low (2 bars ago)
• 13 such closes are required (not
necessarily consecutively)
1 2
4
3
56
78
9 1011
1213
TD Countdown™ can start as
early as Bar 9 of TD Setup™
TD Buy Countdown™
9
1
23
4
56
7
8
1 2
4
3
56
78
9 1011
1213
TD Countdown Qualifier™
Qualifier
• Low (bar 13) of the Countdown must
be <= Close (bar 8)
13
TD Countdown Qualifier™
12
+
+Qualifier
• If Low (bar 13) is not <= Close (bar 8),
then any potential 13 is replaced with
“+” until the condition is satisfied
12
13
TD Risk Level™
TD Risk Level
• Is the true range of low of bar of the
Countdown subtracted from the low of
the low bar
1110
13
12
11
TD Risk Level
• Is not always calculated off bar 13 as
bar 13 is not always the low of the
Countdown
10
1112
TD Low Risk Entry
A Buy „Flip‟ happens when we get a close higher than the
close of 4 bars earlier. If there is none within13 bars of the
13, forget the trade.
13
1
2
98
10
1112
TD Aggressive Entry
An Aggressive buy is the first close higher than the opening
within 8 bars, including bar 13 itself. If this does not
happen within 8 bars, forget the trade.
13
1
2
98
9
1
23
4
56
7
8
TD TDST™
TDST
• The True High of the setup
• The True High is the high of the setup or
the previous close, whichever is higher
TDST
Defines where
the thrust
started
9
1
23
4
56
7
8
TD TDST™
TDST
• The True High of the setup
• The True High is the high of the setup or
the previous close, whichever is higher
• It is not always the high of bar 1
Markes the start of a defined thrusting move – the real pivot point
Offer true support and resistance
A Setup that challenged, but does not break or makes a
Disqualified* penetration of a TDST line, indicates a good short
term reversal likely
A Setup which makes a Qualified* penetration of a TDST line
(line turns solid) indicates great strength and a strong candidate
to complete a Countdown and a full Sequential
*Qualification rules same as TD Line breaks
TD TDST™ - Benefits