What is TD Sequential?

TD Sequential is a powerful technical analysis indicator developed by Tom DeMark, designed to predict potential trend exhaustion and price reversals. It works across any asset and timeframe by objectively counting candlestick patterns.

Phase 1: The TD Setup

The Setup is the foundation. It requires a continuous streak of 9 bars satisfying a specific price momentum rule to confirm a trend is overextended.

• Bearish Setup (Sell Signal): 9 consecutive bars where the close of each bar is higher than the close of 4 bars prior.
• Bullish Setup (Buy Signal): 9 consecutive bars where the close of each bar is lower than the close of 4 bars prior.

*Rule of Interruption: If at any point (e.g., bar 6) the condition fails, the count resets instantly to 0. It must be a perfect, uninterrupted streak of 9.

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Phase 2: The TD Countdown

After a completed 9-count Setup, the Countdown begins to pinpoint the exact macro reversal. It is a more stringent 13-bar count, but unlike the Setup, these 13 bars do not need to be consecutive.

• Buy Countdown: Counts 13 bars where the close is less than or equal to the low of 2 bars prior.
• Sell Countdown: Counts 13 bars where the close is greater than or equal to the high of 2 bars prior.

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Hardcore Takeaway

• The 9-Count: Represents short-term momentum exhaustion. Price often pauses, consolidates, or sees a minor bounce.
• The 13-Count: Represents structural, macro-level trend termination. This is where high-probability, major trend reversals happen.