CONTENT FINISHING CHECKLIST

– IS THE TITLE SHORT AND TO THE POINT

– AI SCORE BELOW 30%

– PLAGIARISM BELOW 3%

– CONTENT FLOWS WELL

– GOOD USE OF TABLES

– KEY POINTS

– JOHNSON BOXES

– IS THE ARTICLE INTENT-BASED

TD Sequential Indicator Explained: Timing the Market Like a Pro

Feature	Details
Creator	Tom DeMark
Primary Use	Identify trend exhaustion and possible price reversals
Main Components	TD Setup (9 bars) and TD Countdown (13 bars)
Signal Direction	Bullish reversal (after a downtrend), Bearish reversal (after an uptrend)
Markets Applicable	Stocks, Crypto, Forex, Futures
Timeframes Supported	Intraday, Daily, Weekly, Monthly
Additional Tools	Trendlines, Volume, Candlestick Patterns, Support/Resistance
Compatible Platforms	TradingView, ThinkorSwim, MetaTrader, NinjaTrader, Sierra Chart

Getting to Know the TD Sequential Indicator

• What it does: TD Sequential is a chart-based tool that helps spot when a trend might be nearing its end. It’s a favorite among traders who want to jump into a new trend early or exit before a reversal wipes out their gains.
• Who created it: Tom DeMark, a well-known figure in the technical analysis world, designed it to pinpoint turning points that other indicators miss. Unlike most lagging indicators, TD Sequential tries to predict when price momentum is drying up—before it actually happens.
• Where it works: Whether you’re into stocks, crypto, forex, or futures, TD Sequential can be applied across nearly every type of financial market. It also works on multiple timeframes—from intraday charts to weekly or even monthly setups.

Breaking Down the Key Components

• TD Setup: This is the starting point. The Setup looks for a series of 9 consecutive price bars that meet specific criteria.
• A bullish Setup forms when each bar closes lower than the close 4 bars earlier.
• A bearish Setup forms when each bar closes higher than the close 4 bars earlier.

The Setup helps identify when a trend has been extended long enough that a reversal could be on the horizon. It doesn’t confirm a reversal on its own, but it sets the stage for the next phase.

• TD Countdown: Once a valid Setup completes, the Countdown phase begins. This tracks the next 13 bars but applies a different condition:
• For a bullish Countdown, each bar must close lower than the low two bars earlier.
• For a bearish Countdown, each bar must close higher than the high two bars earlier.

Unlike the Setup, these bars don’t need to be consecutive. The Countdown confirms whether the trend is truly running out of steam. Once the 13th bar is confirmed, traders start watching closely for a price reversal.

• TD Combo (optional tool): This is a variation of the Countdown. It works on similar logic but tends to give signals faster. Some traders prefer Combo for early entries, though it can lead to more false positives compared to the traditional Countdown.

How to Spot Buy and Sell Signals

• Bullish signal: A completed 9-bar Setup followed by a 13-bar Countdown during a downtrend suggests that selling pressure is likely over. When price action begins to reverse and closes above recent resistance, this often confirms the signal.
• Bearish signal: During an uptrend, if the market completes a bearish Setup and Countdown, it suggests the buying momentum is fading. Once price closes below a recent support level, a potential downtrend may begin.
• Confirmation tip: Don’t rely solely on the 9-count. Wait for the full 13-count and look for price behavior that aligns with the signal, like breakout candles or volume shifts.

Seeing It in Action

• Example scenario: You’re analyzing Ethereum’s 1-hour chart. After a strong rally, the chart starts showing a bearish Setup—nine candles each closing higher than four candles back. The Setup completes, and a few candles later, the Countdown begins. After 13 valid signals (not necessarily in a row), Ethereum fails to make new highs and starts dipping below its short-term trendline.

At this point, the indicator has done its job. If price breaks through a key support level with volume, a trader might use this as a short entry signal. The timing is what sets TD Sequential apart—it highlights likely reversals before they fully develop.

How TD Sequential Compares to Other Indicators

Most technical indicators look backward. They wait until something has already happened before alerting you. TD Sequential does the opposite—it anticipates. Here’s how it stacks up:

• RSI: Measures overbought or oversold levels but doesn’t signal exhaustion as early.
• MACD: Tracks momentum changes but usually reacts after the shift.
• Moving Averages: Smooth out price but often give late signals.
• TD Sequential: Identifies when a trend is nearing exhaustion, even if momentum hasn’t completely shifted.

This forward-thinking approach is why traders use it to gain a timing edge in fast-moving markets.

Mistakes People Make When Using TD Sequential

• Jumping the gun: One of the most common missteps is acting on the 9-bar Setup alone without waiting for the Countdown. This can lead to early entries while the trend is still strong.
• Forcing a signal: Traders sometimes try to find a 9-count or 13-count on charts that simply don’t meet the criteria. This distorts the indicator’s purpose and leads to unreliable trades.
• Ignoring context: TD Sequential works best when it aligns with support/resistance zones, candlestick patterns, or volume changes. Using it in isolation can produce false signals.
• Poor risk management: Even with a confirmed 13-count, there’s no guarantee the market will reverse. Always use stops and manage position size wisely.

How to Use TD Sequential Like a Pro

• Use multiple timeframes: Look for alignment between the short-term and higher timeframes. For example, a 13-count on the 4-hour chart that lines up with a 9-count on the 1-hour adds weight to the signal.
• Pair with other tools: Combine it with Fibonacci retracements, trendlines, or candlestick reversal patterns to increase accuracy.
• Wait for confirmation: Don’t act until the entire Countdown completes and price action confirms the reversal.
• Stay patient: Good TD Sequential setups don’t happen constantly. Let them come to you, and trade only the cleanest signals.

Where to Access TD Sequential

• TradingView: This platform offers several community scripts that implement the TD Sequential algorithm. Look for well-rated ones that follow the original DeMark method.
• ThinkorSwim: You can install custom scripts or import user-created versions. Some brokers include it in premium tools.
• MetaTrader 4/5: MT4 and MT5 don’t offer it by default, but you can download third-party indicators or build one with MetaEditor.
• NinjaTrader/Sierra Chart: Both platforms support the indicator through plugin installations or developer integrations.

Just make sure you understand the version you’re using—some scripts simplify the rules or label candles differently.

Conclusion

TD Sequential is one of those rare indicators that can actually help you stay ahead of the market. Instead of reacting to what already happened, it lets you anticipate where the market might be headed based on trend exhaustion. That’s a huge advantage for traders who want to enter before a reversal or lock in profits before the trend changes direction.

By using its two-phase structure—the Setup followed by the Countdown—you get a more complete picture of whether a trend is about to flip. When combined with solid chart-reading skills, smart risk management, and a dose of patience, TD Sequential can give your trading strategy a serious edge.

Key Takeaway: TD Sequential isn’t a magic signal, but it gives traders a structured way to catch turning points before they become obvious. It’s one of the few indicators that lets you act early without relying on lagging momentum tools.

FAQs

Can TD Sequential be applied to range-bound markets?

It’s less effective in sideways or choppy markets since it’s built to identify trend exhaustion, not consolidate zones.

Is the 13-count always necessary for a reversal?

Yes, in the original system, the 13-count is critical. Without it, the Setup alone doesn’t confirm exhaustion.

What type of trader benefits most from TD Sequential?

Swing traders and position traders who want to catch reversals early get the most out of it, though day traders use it too.

Are TD Sequential signals good for scalping?

Scalping on lower timeframes like 1-minute charts is possible but not ideal, as the signal reliability drops with increased noise.

Do TD Sequential scripts vary across platforms?

Yes, not all scripts follow the same rules. Always verify that the one you’re using adheres to DeMark’s original criteria.