DeMark StudiesTD Sequential™

Presented by Trevor Neil

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™

DAX Index

TD Sequential™

S&P 500 Cash

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)

Buy Setup™ correction

Brent Crude Futures

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

Minimum Setup trades lower

to qualify before correcting sideways

Gilt Futures

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

TD Sequential™

Countdown

Qualifiers

Gilt Futures

TD Sequential™Countdown Qualifiers

Nikkei Index

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