Does TDS 9 always work?

The answer is no. If you observe enough trend charts, you will find that TDS 9 is typically more
applicable to the index and individual stocks in oscillating and weak bull/bear markets. When the
stock price or index is in a big bear/bull market, the trend should be analyzed together with
market sentiment, fundamentals, and other indicators.

A Challenge: How can I enhance the reliability of TD Sequential

9?
Hey mooers,

After learning about the features of DeMark 9® (TDS 9), it's time to find out how it can be

applied with other indicators to better inform an investor!

Does TDS 9 always work?

The answer is no. If you observe enough trend charts, you will find that TDS 9 is typically more
applicable to the index and individual stocks in oscillating and weak bull/bear markets. When the
stock price or index is in a big bear/bull market, the trend should be analyzed together with
market sentiment, fundamentals, and other indicators.
*Images provided are not current and any securities are shown for illustrative purposes only.

TDS 9+MACD

TDS 9 is a useful tool to help identify potential timings of a price reversal. However, as in the
case of any other tool, it should not be used in isolation. The TDS 9 is better used with
candlestick analysis, price patterns, or another indicator. For example, we can add our old friend
—the MACD indicator—to double-check the trend.

*Images provided are not current and any securities are shown for illustrative purposes only.

The chart shows us two TDS 9 sequences, but only one worked. We can see that the price
reversed as expected when the MACD peaked and number 9 overlapped, while it failed to do so
on the tenth day when the MACD was still climbing.

Do you grasp TDS 9 works? Take the vote below to test it out!

TDS 9 🔃
DeMark 9 (TDS 9) is a technical analysis tool used by traders to identify potential market turning
points. It generates buy and sell signals based on a price bar pattern in a chart. The TDS 9
involves counting the number of price bars in a given pattern and deciding whether to buy or sell
based on whether a certain threshold is reached. When the number of price bars in a specific
pattern reaches 9, it is considered a sell signal, indicating that the trend may be changing.

How to enhance the reliability of DeMark 9?

Some methods for increasing the reliability of the TDS 9 indicator include:
1) Chart setup: Add the TDS 9 indicator to the chart of the stock under consideration.

2) Identifying buy and sell setups: The TDS 9 indicator generates buy and sell setups based on
the number of market buying and selling stock. When the TDS 9 indicator reaches 9, a buy
setup is generated, and when the indicator reaches 9 or lower, a sell setup is generated.
3) Use in conjunction with other technical indicators and analysis techniques, such as Moving
Average Convergence Divergence (MACD), Relative Strength Index (RSI), or Bollinger Bands,
and that market conditions and potential risks be thoroughly examined.

The basic idea behind analysing TDS 9 in conjunction with the MACD indicator is to use the two
indicators to confirm each other's signals and gain a more comprehensive picture of market
conditions. If the MACD line crosses above the signal line, it can indicate a possible bullish
reversal and a good opportunity for investors to enter a long position. If the MACD line crosses
below the signal line, it can indicate a potential bearish reversal and may be a good time for
investors to exit a long position or enter a short position. This can be useful information for
investors when deciding whether to enter or exit positions, or when adjusting their investment
strategy.

Does DeMark 9 always work?

No, the TDS 9 indicator does not always work. Although technical analysis tools such as TDS 9
can be useful in identifying potential trend reversals in bull markets, they might generate false
signals.

It is significant to use this tool in conjunction with other analysis techniques and to never make
investment decisions depend on one technical analysis only. As market conditions are complex
and dynamic, we must know that past performance is not a guarantee of future results, and
there are always risks associated with stock market investing.

Using TD9 intraday with volume & RSI. SPY example

I find that when pairing nine with Volume and RSI11 it gives fairly reliable signals during the
slower market hours. E.g. East Coast lunchtime.

Note here how the rising 9 ending at 12:30 has declining volume yet RSI continues to climb.
Similarly, the 13:00 falling 9 sees a volume spike and sudden decline as the RSI11 recovers
from extremely oversold levels. This is also a great example showing that recovery doesn't
always mean rebound back up, watch for consolidation without breaking the top of #8, it's likely
leading to further price declines.

During peak volume times in the day I find that TD9 just gets run-over due to the market driving
forces.

Final thoughts, have your daily charts with key support/resistance and Fibonacci levels tracking
and recent heavy rise/fall and notice how TD9 plays out as price action reaches those key
levels.

TDS9 Indicator
Thanks moomoo for introducing us to the new indicator! It's interesting and accurate on certain
instances (while some are not). I feel it's more accurate to be used on the index instead of
individual stocks. Anyway, it's a good indicator for me to avoid a FOMO trade!

TDS9 Indicator = turning point happens the next candle after the "9" candle

Test case 1: $Apple(AAPL.US)$ (failed?)

It managed to identify that it has bottomed out in early Jan. Based on TD9, the uptrend
supposed to take a break in late Jan but the stock continues to go up..

2. $S&P 500 Index(.SPX.US)$ (quite accurate)

It managed to identify the bottoms and tops a few times in early Sep, late Sep and late Oct.
Seems like market is going for a short reversal in the coming few days!

TA challenge and trying out

found this indicator working at Apple stock ticker at recent trading days.. after the prices went
down and after the count of 9 and as the macd is also no longer climbing to the peak, the prices
went up after that.

i would think probably this indicator might also be able to pair up with RSI as well to find the
opportunity.

Seems like TDS 9 don't work when there are huge macro shift
and uncertainty
TA might be a good tool to use when the market is stable, but when there are huge uncertainty
and macro shift, it seems to perform horribly.

Tested it out on $Hang Seng Index(800000.HK)$ and it seems to work OK but it stopped
working when the Chinese bear market cause by political policies kicks in. The huge losses that
would have been incurred by following the signals will wipe put all the smaller gains and more.
So I will probably have to avoid it during such period.

Magic 9 works good on daily, weekly and monthly chart, it works on intraday too, but not
as accurate as big time frames. We also have to consider the big pic trend and use
multi-time analysis first, then use magic 9 to find out sweet entry spot on lower time
frame.
When the stock price rises or falls during the 9 consecutive days, the trigger conditions
will be met to generate a series of 1, 2, 3 …. 7, 8, 9, and the series will be marked
above the K line on the day (below). Only when the stock price reaches the trigger
condition for the sixth consecutive day, the series will begin to display, displaying 1, 2,
3, 4, 5, and 6 in sequence, and 7 will be displayed when the trigger condition is still
reached on the seventh day. When the trigger condition is reached, the serial number in
the previous 6 days disappears. The display logic of the eighth day is the same as that
of the seventh day. When the trigger condition is still reached on the ninth day, a nine-
turn structure (sequence) is formed. When the trigger condition is not reached on the
ninth day, the serial number of the previous eight days disappears, and the nine-turn
structure does not hold. The nine-turn structure formed during the rise of the stock price
is called the 9-up structure, and the nine-turn structure formed during the decline of the
stock price is called the 9-down structure.

Keep in Mind
1. As a technical index, magic 9 can not be regarded as the judgment basis of buying and
selling stocks arbitrarily, but should be combined with the fundamental and other technical
indicators for comprehensive analysis.
2. In the process of strong rise (fall) of stock price, 9-up (down) structure may be formed
continuously. At this time, the use strategy of magic nine turn should be changed, and the first
up (down) 9 structure should be regarded as a signal to strengthen the market start (down).
3. The magic nine turn technical indicators superimpose the bottom deviation (top deviation)
and other signals for secondary confirmation, which is more able to determine the reversal of
the trend.

Trading Tactics
The core use of the magic 9 turn index is to help us effectively escape the top area of the stock
and accurately grasp the bottom opportunity of the stock. When the stock price rises 9 structure
in the process of operation, the stock price is often located in the top reversal area, and
individual stocks are likely to face the risk of reversal and decline. At this time, we should reduce
the position to avoid the risk. When the stock price falls 9 structure, the stock price tends to be
in the bottom reversal area, and individual stocks are likely to start the trend of stopping falling
and rebounding. At this time, we can consider building positions or increasing positions to obtain
the excess profits brought by the rise of stock prices.

Identify a turning point using TDS9

Basically there are 3 steps to get a buy signal using daily data:
1) Setup. There must be a decline of at least nine or more consequtive.
2) Intersection. The high of any day on or after the eighth day of the set up must be greater
than the low of any day three or more days earlier.
3) Countdown. Count the number of days in which we close lower than the close two days ago
(doesn’t need to be continuous).
When the countdown reaches 13, we get a buy signal.
Sound confusing. Fortunately moomoo chart "NINE" can count for you. I used Tesla stock as an
example.
Limitation
1. The challenging part is how to identify a "buy" signal for decline trend and a "sell" signal for
rising trend.
2. The daily data to observe the reversal trend is very long - can be as long as 3 weeks. Long
duration which most retail investors is not willing to use.
Bottom line
I think TDS9 is a useful tool to predict price reversal. But it's challenging to use it to time the
market for day trader - need experience and good judgement.
Source:
TSD9 explanation cmtassociation....

$Tesla(TSLA.US)$

TA Challenge: Get to know TD Sequential 9 in one chart

Case in Real Market: AMZN$Amazon(AMZN.US)$

By adding the TDS 9 indicator to AMZN's daily candlesticks chart, you can see three bearish
TDS 9 structures between August and November 2022, all followed by a bottoming-out phase.
However, it is worth noting that reversals do not always occur immediately, and the degree of
reversal varies.
Magical nine turns

OK, I think this technical indicator is very difficult and error-prone

magic numbers 1-9

Condition = When today's closing price is greater than or less than the closing price four days
ago, it begins to be established.
1. Figures will only begin to be displayed if the stock price meets the conditions for six
consecutive days. If the conditions are not met on the 7th day, the previous numbers will
disappear and the calculation will begin again. The same is true for days 8 and 9.

2. When the successful trigger conditions form numbers 1-9, this may be a buy or sell signal.
When a downtrend occurs, the number 9 indicates a possible reversal (rise), which is a buying
signal. Conversely, in an uptrend, the number 9 indicates a possible reversal (fall), which is a
signal to sell.

3. The magic nine turns are su

https://tradingcenter.org/index.php/
learn/technical-analysis/328-how-to-
trade-td-sequential
The TD Sequential and How to Trade it
How to Trade with the TD Sequential (Tom Demark)
What is the TD Sequential?
The TD (Tom Demark) Sequential is a powerful tool designed to identify the exact time of
trend exhaustion and price reversal. It is a counter-trend tool that aims to solve the problem
of several TA indicators that are profitable during trending markets but perform very poorly
in ranging markets. TD Sequential can be used in any timeframe and in any market
conditions. However, it is more reliable on H4 timeframes, and above.
Key Features
(1) The TD Sequential can be used in any timeframe and in any financial-traded asset
(2) It includes two phases: The setup phase (9-count) and the Countdown phase (13-count)
(3) The TD Sequential will work only in Japanese Candlesticks or a Bar chart
(4) Timewise, the TD Sequential is ideal for the early recognition of key market turning
points
(5) The TD Sequential also generates support and resistance levels (TDST lines)
(6) The rules of TD Sequential can be easily modified, therefore, there are many variations

The Two (2) Phases of the TD Sequential

TD Sequential includes two phases that emerge after a Price-Flip:
(A) The TD Setup (Momentum Phase)
The TD Setup phase takes place after a Price Flip and includes a 9-candle count. If the 9-
candle count is completed, the TD Sequential identifies a point of a likely top or bottom.
(Trading Signal-1)
(B) The TD Countdown (Trend Exhaustion Phase)
The second phase is valid only if a TD Setup is already established. The TD Countdown
includes a 13-candles count. If the 13-candles count is completed, the TD Sequential
identifies a point of a likely top or bottom. (Trading Signal-2)
Visualizing and Explaining the Tom Demark Sequential
When the TD Sequential is applied to a chart, it adds various numbers on the top or bottom
of each candle. These numbers follow a specific ascending order starting from 1 and aiming
to complete a 9 count in the Setup Phase and a 13 count in the Countdown Phase.
TDST lines
TDST lines are support and resistance price levels that represent the extremes of the first
bar in the Setup phase.
Chart: Applying the TD Sequential on EURUSD

As we can see in the above chart, the TD indicator generates TDST lines which represent
support and resistance.

PHASE-1: EXPLAINING THE TD SETUP

This is a brief explanation of the TD Setup phase during a bullish and bearish market.
(A) Bullish Trend TD Setup
An initial starting number ‘1’ is plotted if a candle manages to close higher than the close of
a candle four (4) periods ago. This four-period rule is key for the calculations of the TD
Sequential as it repeats again and again. Consequently, the second number ‘2’ is plotted
only if the second candle manages to close higher than the close of the candle four (4)
periods ago. The point of reversal comes when the TD Sequential plots the number ‘9’ on
top of a candle. In other words, when 9 consecutive candles managed to close higher than
the candles of 4 periods earlier.

 If at any point, a candle closes lower than the candle four periods earlier the TD setup
is immediately canceled
  For the perfect setup, the highs of the 8th and 9th candle must be higher than the
highs of the 6th and 7th candle

(B) Bearish Trend TD Setup

In a bearish trend, the initial starting number ‘1’ is plotted if a candle closes lower than the
close of a candle four (4) periods ago. And this rule is applied for all the following candles.
The point of reversal comes when the TD Sequential plots the number ‘9’ on the bottom of a
candle. In other words, when 9 consecutive candles closed lower than the candles of 4
periods earlier.

 If at any point, a candle closes higher than the candle four periods earlier the TD
setup is immediately canceled
 For the perfect setup, the lows of the 8th and 9th candle must be lower than the lows
of the 6th and 7th candle

Trading Signals in the Setup Phase

If one of the above patterns is completed there is a high probability that the market will
reverse in the opposite direction. The number ‘9’ is ideal for entering a trade opposite to the
established trend. The stop-loss should be above or below the highs/lows of the 9th candle.
If the pattern plays out, the pullback will be significantly strong during the first 3-4 candles
after the confirmation of number ‘9’.
When the 9th candle is confirmed, given that none of the Setup candles crossed its line of
TDST Support/Resistance, there is a high probability for a trend reversal. Ideally, the 9th
candle should close near its TDST line. If the Setup is perfect, anticipate 3-4 strong candles
in the opposite direction.

PHASE-2: EXPLAINING THE TD COUNTDOWN

The second phase or else the TD Countdown commences after the TD Setup phase in
already confirmed and completed. TD Countdown phase includes 13 candles. Each candle’s
close is compared to a close of two candles earlier.
Why the Countdown phase is different than the Setup phase?

 There is a 13-count instead of the 9-count of the Setup Phase

 Each candle’s close is compared to the close of 2 candles earlier instead of the 4-
candles of the Setup Phase
 The Countdown Phase doesn’t require a sequence of consecutive candles. If the order
of candles is interrupted, the Countdown is not canceled, when the order of candles is
restored, the countdown resumes
 The Countdown phase generates stronger trading signals than the Setup phase,
which last longer too

Calculations
The TD Countdown phase starts as the TD Setup phase is already completed. The final ‘9’
candles of the setup become the candles number ‘1’ of the countdown. The number ‘1’
candle may be postponed until the conditions are met. The number ‘1’ candle may be
postponed, but not canceled. In order for the TD Countdown phase to complete, the number
‘13’ candle must close above (on a bullish countdown) or below (on a bearish countdown)
the close of Countdown candle number ‘8’.
Again, the 13th candle must be below/above the 8th candle. In addition, like every other
Countdown candle, it must be higher/lower than the close of the candle two candles earlier.
If both these conditions are not satisfied, we should expect new candles, until these
requirements are met. If the 13th candle doesn’t meet the above conditions, it is plotted
with a «+» above, and the TD Countdown continues to search for a 13th candle at the next
ones until the conditions are met. When the Countdown Phase completes, a new Price Flip
and the establishment of a new trend is likely to happen.
Trading Signals in the Countdown Phase
When the 13th candle of the countdown phase is complete, there is the most aggressive
reversal signal to trade. The price reversal after the 13th candle is expected to be strong
and last for several candles.

Combining TD Sequential with other TA Tools

Other indications should align with the results of the TD Sequential. The TD Sequential is a
very powerful tool to answer the question “When a price reversal is likely to happen” but it
cannot tell “If a price reversal will certainly happen”. As mentioned earlier, the TD
Sequential works only on a Japanese Candlesticks chart or a Bar chart. Therefore, it can be
perfectly combined with price formations or candlestick patterns that occasionally appear or
these two types of charts.

TD Sequential Conclusions
The TD Sequential is a very useful technical analysis tool as it aims to predict the exact time
of a price reversal. However, as in the case of any other tool, the TD Sequential should not
be used in isolation. The TD Sequential should be combined with candlestick analysis, price
patterns, or a proven indicator.
The TD Sequential is more reliable on H4 and above timeframes. However, as there are
multiple conditions for the setup phase to complete, we shouldn’t expect too many trading
signals.
Trading signals are generated in two instances:
(a) when the 9th candle of the setup phase is confirmed, given that none of the Setup
candles crossed its line of TDST Support/Resistance. Ideally, the 9th candle should close
near its TDST line. If the Setup is perfect, anticipate 3-4 strong candles in the opposite
direction
(b) when the 13th candle of the countdown phase is complete, this is the most aggressive
reversal signal

https://trendspider.com/learning-center/td-sequential-a-comprehensive-guide-for-traders/

Calculation of the TD Sequential

The TD Sequential comprises two main phases: the TD Setup phase and the TD
Countdown phase. These phases help identify potential trend reversals in bullish
and bearish markets. Here is an overview of how the TD Sequential is calculated in
both directions:

1. TD Setup phase: The TD Setup phase consists of a 9-candle count. In a

bullish trend, a starting number ‘1’ is plotted if a candle closes higher than
the close of a candle four periods ago. In a bearish trend, a starting number
‘1’ is plotted if a candle closes lower than the close of a candle four periods
ago. The following numbers are plotted when each successive candle
satisfies the four-period rule. The potential reversal point comes when the
TD Sequential plots the number ‘9’ on top of a candle in a bullish trend or at
the bottom of a candle in a bearish trend. The TD Setup is immediately
canceled if, at any point, a candle fails to satisfy the four-period rule.
2. TD Countdown phase: The TD Countdown phase starts after completing the
TD Setup phase and consists of a 13-candle count. In a bullish countdown,
each candle’s close is compared to the close of two candles earlier, and the
close must be greater than the close two periods earlier. In a bearish
countdown, each candle’s close is compared to the close of two candles
earlier, and the close must be lower than the close two periods earlier. The
countdown does not require a consecutive sequence of candles; if the order
of candles is interrupted, the countdown is not canceled. The TD Countdown
phase generates stronger trading signals than the Setup phase, with the
potential for longer-lasting price reversals.
By understanding the bullish and bearish trends calculations, traders can use the
TD Sequential to better anticipate potential trend reversals and optimize their
trading strategies.

Interpretation of the TD Sequential

The TD Sequential generates specific numerical values on the chart, following an
ascending order from 1 to 9 in the Setup phase and from 1 to 13 in the Countdown
phase. These numbers, plotted above or below the respective candles, provide
potential signals for trend exhaustion and price reversal.
In the Setup phase, a completed 9-count indicates a potential reversal point. In the
Countdown phase, a completed 13-count suggests a higher probability of trend
reversal. Additionally, the TD Sequential generates TDST lines, which act
as support and resistance levels based on the extremes of the first candle in the
Setup phase.
Example scanners and strategies that use TD Sequential
The TD Sequential can be used in both Scanning the market and Testing Strategies.
To see how exactly it can be used in these ways, we provide the following samples.
The scanner searches the market for stocks using this indicator, and the strategy
tests buying and selling rules built around this indicator.

How to Use the TD Sequential in Trading

1. Identify the Setup phase: Look for a completed 9-count in a bullish or
bearish trend. This may signal a potential reversal point.
2. Observe the Countdown phase: After a completed Setup phase, watch for a
13-count. This indicates a higher probability of trend reversal.
3. Monitor support and resistance levels (TDST lines): Use the TDST lines as
potential entry and exit points and stop-loss levels.
4. Combine with other technical analysis tools: Enhance the effectiveness of
the TD Sequential by using it in conjunction with other technical indicators
or price patterns.

Advantages of the TD Sequential

1. Applicable across various timeframes and assets: The TD Sequential can
be used on any financial-traded asset and on multiple timeframes, making it
a versatile tool for traders.
2. Early identification of trend reversals: The TD Sequential allows traders to
enter or exit positions ahead of significant market moves by identifying
potential exhaustion points.
3. Clear, quantifiable signals: The numerical values generated by the TD
Sequential provide easily interpretable signals, reducing the subjectivity
often associated with technical analysis.

Limitations of the TD Sequential

1. No guarantee of price reversal: While the TD Sequential indicates potential
trend reversals, it does not guarantee that they will occur. This can lead to
false signals and potential losses.
 2. Dependency on historical data: Like other technical analysis tools, the TD
Sequential relies on historical price data, which may not always indicate
future price movements.
3. Lack of context: The TD Sequential focuses solely on price action, ignoring
other market factors such as news events, economic data, and investor
sentiment.

The bottom line

The TD Sequential is a valuable technical analysis tool that can help traders
identify trend exhaustion and potential price reversals. By understanding the
calculation and interpretation of the TD Sequential, traders can incorporate it into
their trading strategies to enhance their market timing. However, it is vital to
recognize the TD Sequential’s limitations and use it in conjunction with other
technical and fundamental analysis tools. By doing so, traders can develop a more
comprehensive and practical approach to navigating the financial markets.