Quote from spindr0:
In a brief serious vein, Tom DeMark ceated some technical indicators that involve consecutive up (or down) days.
A buy signal for the TD Setup is where you have 9 consecutive bars where the close is less than the close 4 bars ago.
A buy signal for the TD Countdown is where you have 13 consecutive bars where the close is less the than the bar low 2 days earlier.
Once upon a time I used to look at this for some equities that I traded. The main problem was that there was no magic in the number 9 (or 13). You could have 10 or 12 or even more consecutive bars and you could have to endure some pain before the eventual turn if you took the trade. Or you might get a brief reverse and the pattern would then continue and you'd be SOL on you misdirected trade (see '08-'09 bear).
But of merit, in general, with a large number of consecutives up (or down) days in the same direction, you tend to be closer to the top (or bottom).
