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

To: Redhead who wrote (12430)	2/18/1998 1:35:00 PM
From: Dave H	Read Replies (2) \| Respond to of 79302

Hi Redhead, A sequential is an indicator invented by Thomas DeMark -- a famous TA guy. It tries to find low risk buy and sell areas. A buy sequential is made of three parts (sell sequentials are basically the reverse): 1) setup -- a consecutive series of 9 closes where each close is less than the close 4 days prior 2) intersection -- starting from day 8 of the setup, look for a day where the close is greater or equal to the low 3 days prior (basically putting the breaks on the fall) 3) countdown -- 13 days, not needing to be successive, where the close of each day is less than or equal to the low 2 days prior. Countdown can begin on day 9 of the setup. After all this is complete you should now be at an area of a low risk buying opportunity. There are lots of qualifiers and filters for the sequential, since not all of them work. As for the Dow, the Dow is now in the middle of a sell sequential, which may or may not make it to completion. The sell setup started on 1/27/98. Intersection occured on day 8 of the setup, on 2/5/98. Day #6 of the countdown was yesterday, 2/17/98. If it makes it to day #13, that would imply the Dow will have reached a local top. However, it may not make it that far; it isn't too easy for the dow to complete sequentials. Last sell sequential for the Dow was completed on 7/29/97. (for the purists though, it was recycled...recyclying is another setup that occurs before the sequential is complete, and it cancels out the sequential.) anyway, hope this helps! If you are interested in this stuff, DeMark's books cover this stuff and a lot of other indicators he has come up with in great depth. -dave