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

To: BI*RI who wrote (18849)	6/29/1998 7:47:00 AM
From: Dave H	Respond to of 79477

Hi Marc, Interesting. So, when we have a day like APCO had yesterday, the sequential is dead? As the sequential of lows is broken? Actually, not quite -- I forgot to mention another thing (sequentials have LOTS of rules, it seems...): A buy sequential is canceled if, during the course of the countdown, any day closes (or more conservatively, records a high) above the true high during the setup. [The true high is either the highest high of the setup, OR the close of the day before the setup began, whichever is higher. Note that this only happens if the first day of the setup gaps down. DeMark considers this level as almost part of the opening price.] So, for APCO the sequential is still alive, since the highest high of the buy setup was recorded on 6/8, when the high was 12 1/2. Thus, unless APCO closes above 12 1/2, or APCO records another setup, the sequential is still valid. Incidentally, the highest high of a setup (or lowest low) is also called a TD Setup Trendline (TDST) -- these can prove to be quite powerful support and resistance lines. -dave