TD Sequential

What is TD Sequential?

TD Sequential is a powerful technical analysis indicator developed by Tom DeMark, designed to predict potential trend exhaustion and price reversals. It works across any asset and timeframe by objectively counting candlestick patterns.

How it works?

The Setup (The Count to 9)

Bullish Setup: Requires 9 consecutive candlesticks where each close is lower than the close 4 bars earlier. It signals that a downtrend is overextended.

Bearish Setup: Requires 9 consecutive candlesticks where each close is higher than the close 4 bars earlier. It signals that an uptrend is overextended.

The Countdown (The Count to 13)

Once a Setup completes, the Countdown begins. It counts 13 bars where the close is compared to the high/low of 2 bars prior. It represents the final, ultimate exhaustion point of the macro trend.

How to trade?

• The "9" Signal: A completed 9-count often triggers a short term, aggressive counter trend bounce or pause.
• The "13" Signal: A completed 13-count is a highly conservative, strong signal for a major trend reversal.