TD Sequential Best.pdf

DeMark Studies TD 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

DISCLAIMER The 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.

TD Sequential™ - Benefits  Objectively generated trade ideas  Identifies exhaustion tops and bottoms

 Mechanical, mathematical, objective and precise

TD Sequential™ TD Setup™ + TD Countdown™ = 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

DAX Index

TD Sequential™

S&P 500 Cash

TD Sequential™

TD Buy Setup™

1

Setup •

3

2

Close (today) > Close (4 bars ago)

•

Then Close (today) < Close (4 bars ago)

•

Minimum of 9 such consecutive closes

4

7 5

6

8

9

TD Buy Setup™ Correction

1

3 2

7

4 5

6

8

9

After a completed TD Buy Setup™, expect 1-4 bars correction (either sideways or against the trend of the Setup)

Brent Crude Futures

Buy Setup™ correction

TD Setup Qualifier™ Qualifier 1

The low of bar 8 OR bar 9 of the TD Buy Setup needs to be below the lows of bars 6 AND 7

3 2

7

4 5

6

8

9

Note that Setups may reach the minimum requirement and evolve into Countdowns without being qualified

Gilt Futures

Minimum Setup trades lower to qualify before correcting sideways

TD Buy Countdown™ TD Countdown™ can start as early as Bar 9 of TD Setup™ 1

3 2 4

7 5

Countdown

6

8

9 1

2 3 4

• Close (today) <= Low (2 bars ago) • 13 such closes are required (not necessarily consecutively)

5

6 7

8 9 10

11

12

13

TD Countdown Qualifier™ 1

3 2 4

7 5

6

8

9 1

2 3

Qualifier •

Low (bar 13) of the Countdown must be <= Close (bar 8)

4

5

6 7

8 9 10

11

12

13

TD Countdown Qualifier™

+

Qualifier •

+ 12

If Low (bar 13) is not <= Close (bar 8), then any potential 13 is replaced with “+” until the condition is satisfied

13

Gilt Futures TD Sequential™ Countdown Qualifiers

Nikkei Index

Countdown Qualifiers

TD Sequential™

TD Risk Level™ TD Risk Level •

10

Is not always calculated off bar 13 as bar 13 is not always the low of the Countdown

11 12

13

11

TD Risk Level •

Is the true range of low of bar of the Countdown subtracted from the low of the low bar

13 12

TD Low Risk Entry 2 1

8

9

10 11

12

13 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.

TD Aggressive Entry 2 1

8

9

10 11

12

13 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.

TD TDST™ TDST Defines where the thrust started 1

TDST • •

3

2

The True High of the setup The True High is the high of the setup or the previous close, whichever is higher

4

7 5

6

8

9

TD TDST™

1

TDST •

3

2

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

4

7 5

6

8

9

TD TDST™ - Benefits  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