What is it for?
Applying Tom DeMark’s TD Sequential serves the purpose of identifying a price point where an uptrend or a downtrend exhausts itself and reverses.
What are the main components of TD Sequential?
TD Sequential has two parts – TD Setup and TD Countdown.
- The first phase of TD Sequential starts with a TD Setup and is completed with a 9 count. When the 9 count is completed, it is at that point, a price pause, price pullback, or reversal is likely.
- It is also at that point where TD Sequential starts the second phase with TD Countdown and is completed with a 13 count. When the 13 count is recorded, it is at that point, a price pause, price pullback, or a reversal is likely.
Example charts:
- TD Buy Setup for Ebay (EBAY)
- TD Buy Countdown for Zynga (ZNGA)
- TD Sell Setup for Netflix (NFLX)
- TD Sell Countdown for Network Appliance (NTAP)
- The written explanation of each example is numbered in order.
