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: 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 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?
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.
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.
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.