TD9

Overview

The TD Sequential (TD9) is a market timing indicator. It's designed to predict potential price exhaustion and market turns by comparing the current price bar to the one four bars earlier. The indicator consists of two parts: TD Setup and TD Countdown, each with a count of 1 to 9.

Calculation

The TD Sequential has two main components:

1. TD Setup: It compares the current close to the close four bars earlier. There must be nine consecutive closes, each one higher (or lower) than the close four bars earlier.

2. TD Countdown: After the completion of the TD Setup, the TD Countdown starts. It compares the current close with the low (or high) two bars earlier. The count continues as long as each bar's close is lower (or higher) than the low (or high) two bars earlier.

Interpretation

The TD Sequential is interpreted as follows:

• A sell signal is given when the TD Setup is completed (after nine consecutive bars where each close is higher than the close four bars earlier), and then the TD Countdown is completed (after thirteen bars where the close is higher than the high two bars earlier).

• A buy signal is given when the TD Setup is completed (after nine consecutive bars where each close is lower than the close four bars earlier), and then the TD Countdown is completed (after thirteen bars where the close is lower than the low two bars earlier).

If you select a strict count of 9, that means it needs exactly 9 candles in a row to trigger a signal.

If you select a lazy signal, even after a series of 9, you can keep triggering new signals.

Indicator Triggers:

Setup count:

We want to place a long & short signal when a strict bearish TD setup occurs or a lazy bullish TD setup occurs.

Countdown count:

We want to place a long & short signal when a strict bearish TD countdown occurs or a lazy bullish TD countdown occurs.

Trend support cross:

We want to place a long & short signal when the price cross up or down the bullish or bearish TD setup line.

Notes :

• Trend Reversals :The TD9 aims to identify potential trend exhaustion points and trend reversals in price movements. One of the primary uses of the TD Sequential is to identify potential trend reversals. When the indicator generates a "TD9 buy" signal after a downtrend or a "TD9 sell" signal after an uptrend, it suggests that a trend reversal might be imminent. Traders can use this information to adjust their positions or take new trades in the opposite direction.

• Exit Points: Traders can use the TD Sequential to determine potential exit points for their trades. For instance, after a series of consecutive higher closes (a "TD9 sell" signal) during an uptrend, it might indicate that the trend is losing momentum, and it could be an opportune time to take profits or tighten stop-loss orders.