TD sequential: countdown recycling

T

Tadart trading

Hallo guys, i'm creating a TD Sequential indicator in javascript and i'm a little stuck, i would appreciate some insight (for the sake of simplicity i'm just looking at the TD buy setup and TD buy countdown).

The book DeMark indicators by Jason Perl states the following about countdown recycling:
An R Will Appear

When a TD Buy Setup that began before, on, or after the completion of a developing TD Buy Countdown, but prior to a bullish TD Price Flip, extends to eighteen bars— that is, eighteen closes, with each one less than the close four price bars earlier.
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The "before" and "on" parts are clear to me, the "after" part however confuses me. What is suppose to happen in the following use case (see attached image):
- completed countdown
- completed setup right after the countdown
- price flip 4 bars after the countdown
Screen Shot 2019-06-22 at 13.14.05.png


The recycle conditions are not met, so what is expected in this situation?
a. continue with a countdown generated by the second setup?
b. discard the second setup and continue checking for new setup completions?
c. none of the above?
 
MarkBrown said:
why demark? it's like studying the theory of "flat earth".
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This to me looks like a whole other discussion, love to pick your brain about suited indicators and what not in a different setting.

As for now it's not my place to judge the theory around the TD sequential, i also don't have the knowledge nor experience to make those decisions. At this moment i'm solely interested in the implementation of the TD Sequential.
 
Tadart trading said:
This to me looks like a whole other discussion, love to pick your brain about suited indicators and what not in a different setting.

As for now it's not my place to judge the theory around the TD sequential, i also don't have the knowledge nor experience to make those decisions. At this moment i'm solely interested in the implementation of the TD Sequential.
More...

no no you asked why it failed and i told you why - it's crap. good luck
 
A price flip (C > C[4] or vice versa) signifies a change in trend therefore it confirms and locks in place the prior completed setup or sequential.
 
Change in trend (price flip) negates any new setup/sequential recycling the prior setup/sequential. The prior ones stay in place. But it doesn't mean they will be successful nor that the new setup/sequential can't be.

There can also be what DeMark refers to as a 9-13-9 (all in same direction) that finally causes a reaction.

Like any other time in a trend or consolidation market any number of events can take place.
 
So in the given example the setup that was completed after the countdown will be ignored and we check for a streak or a price flip?

I also looked at the 9-13-9 buy count, this use case is not qualified because the second buy setup started before the countdown.

Requirements for Validation of a TD Sequential 9-13-9 Buy Count
  1. The TD Buy Setup must not begin before or on the same price bar as the completed TD Buy Countdown,
  2. The ensuing bullish TD Buy Setup must be preceded by a TD Price Flip, and
  3. No completed TD Sell Setup should occur prior to the appearance of the TD Buy Setup.
More...
 
Tadart trading said:
So in the given example the setup that was completed after the countdown will be ignored and we check for a streak or a price flip?

I also looked at the 9-13-9 buy count, this use case is not qualified because the second buy setup started before the countdown.
More...
First let me say it is difficult to give an accurate assessment of your coded indicator without knowing the symbol and timeframe your chart image displays, but I notice that it is not plotting correctly all sequential 13 bars. Bar 5 close is not below low[2] and bar 6 is hard to tell?

As well the new setup 9 bars close/close comparison (bar#9 only appears).

But whether or not to recycle, based on many factors, is really a matter of personal preference.
 
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