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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Dave H who wrote (30482)	6/26/1999 5:47:00 PM
From: Dave H	Read Replies (2) \| Respond to of 79230

Sequential Info (terminology, criteria, etc...) +++++++++++++++++++++++++++++++++++++++++++++++++++++++ As some of you know, I have been using methods of Tom DeMark to come up with potential candidates. The heart of the system is the TD (Tom Demark) Sequential. Basically, a sequential is an indicator invented by Tom DeMark to try to pinpoint the exact moment where buying or selling has been exhausted and that a trend reversal is imminent. It has 3 major components: (1) the setup This is a sequence of 9 consecutive days where the close is higher than the close 4 days prior for a buy setup, or lower for a sell setup. The setup indicates a strong inflow or outflow of money into a stock, where basically the dynamic/balance is changing. (2) the intersection Starting from day 8 of the setup, this is a day where the high must be greater than or equal to the low three trading days earlier. The intersection is required to show that the acceleration represented by the setup has subsided, at least enough to move onto the next phase of the sequential. (3) the countdown After intersection has occured, countdown can begin. Countdown is a series of 13 days (which do not need to be consecutive). Each day's close must be less than or equal to the low two days prior. On the thirteenth day, the countdown (and sequential) is complete. Finally, the sequential is deemed to be "perfected" when after countdown is done, a day's close is higher than the close 4 days prior. This ensures that the sequential is valid and cannot be canceled out for any reason. (there are many ways for sequentials to be canceled...) I know this is rather complicated, but sequentials are really quite cool, since it takes them at least a month to form, and many times they are extremely accurate. For more information on the sequential, I'd HIGHLY recommend DeMark's book New Market Timing Techniques. If you want to see a recent example, check this out, and be sure to check out the chart of the stock to see what happened after the sequential completed! Name: Usa Detergents Inc (usad) -- BUY SEQUENTIAL: ------------------------------------------------- SETUP DAY #1: 990505.0- \| O:5.88\| H:6.13\| L:5.81\| C:6.13\| V:8000.0 SETUP DAY #2: 990506.0- \| O:5.81\| H:6.0\| L:5.81\| C:5.88\| V:4100.0 SETUP DAY #3: 990507.0- \| O:5.81\| H:5.94\| L:5.5\| C:5.63\| V:27200.0 SETUP DAY #4: 990510.0- \| O:5.5\| H:5.88\| L:5.5\| C:5.84\| V:19500.0 SETUP DAY #5: 990511.0- \| O:5.63\| H:6.0\| L:5.63\| C:6.0\| V:24300.0 SETUP DAY #6: 990512.0- \| O:5.75\| H:5.78\| L:5.63\| C:5.69\| V:28600.0 SETUP DAY #7: 990513.0- \| O:5.63\| H:5.88\| L:5.5\| C:5.5\| V:72900.0 SETUP DAY #8: 990514.0- \| O:5.63\| H:5.63\| L:5.5\| C:5.63\| V:43800.0 SETUP DAY #9: 990517.0- \| O:5.38\| H:5.63\| L:5.38\| C:5.63\| V:58600.0 INTERSECTION: 990514.0- \| O:5.63\| H:5.63\| L:5.5\| C:5.63\| V:43800.0 Countdown day #1: 990518.0- \| O:5.5\| H:5.56\| L:5.05\| C:5.25\| V:168300.0 Countdown day #2: 990519.0- \| O:5.38\| H:5.5\| L:5.25\| C:5.38\| V:33400.0 Countdown day #3: 990521.0- \| O:5.31\| H:5.38\| L:5.25\| C:5.25\| V:27800.0 Countdown day #4: 990524.0- \| O:5.25\| H:5.38\| L:5.25\| C:5.31\| V:15700.0 Countdown day #5: 990525.0- \| O:5.47\| H:5.5\| L:5.25\| C:5.25\| V:22000.0 Countdown day #6: 990527.0- \| O:5.31\| H:5.31\| L:5.25\| C:5.25\| V:7900.0 Countdown day #7: 990528.0- \| O:5.25\| H:5.25\| L:5.13\| C:5.19\| V:10700.0 Countdown day #8: 990601.0- \| O:5.09\| H:5.25\| L:5.0\| C:5.0\| V:14000.0 Countdown day #9: 990602.0- \| O:5.0\| H:5.25\| L:4.63\| C:4.63\| V:61400.0 Countdown day #10: 990603.0- \| O:5.13\| H:5.13\| L:4.63\| C:4.88\| V:16200.0 Countdown day #11: 990614.0- \| O:5.53\| H:5.69\| L:5.38\| C:5.38\| V:55300.0 Countdown day #12: 990618.0- \| O:5.25\| H:5.63\| L:5.13\| C:5.13\| V:32800.0 Countdown day #13: 990621.0- \| O:5.05\| H:5.19\| L:5.05\| C:5.13\| V:9800.0 Status: Perfected Perfection Day: 990624.0- \| O:5.25\| H:6.94\| L:5.05\| C:6.31\| V:332600.0 -dave