How to Buy/Sell Cryptocurrency with TD Sequential indicatorby@alirezaseifi
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55,282 reads

How to Buy/Sell Cryptocurrency with TD Sequential indicator

by Alireza SeifiFebruary 19th, 2018
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<em>Disclaimer: I am not a financial advisor. Please do your own due diligence when it comes to </em><a href="" target="_blank"><em>crypto-investing</em></a><em>. </em><strong><em>Never put in money that you cannot afford to lose</em></strong><em>. </em><a href="" target="_blank"><em>Cryptocurrency</em></a><em> markets are extremely volatile. </em><strong><em>Invest at your own risk</em></strong><em>.</em>

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Disclaimer: I am not a financial advisor. Please do your own due diligence when it comes to crypto-investing. Never put in money that you cannot afford to lose. Cryptocurrency markets are extremely volatile. Invest at your own risk.

“In the business world, the rearview mirror is always clearer than the windshield.” ~Warren Buffett~

I’ve figured this indicator is an easy way to indicate where to sell or buy.

What is TD sequential indicator?

Number indicator used to identify a price point where an uptrend or a downtrend exhausts itself and reverses. It gives you a recommendation where to buy and where to sell.

What are we looking at?

  • A series of nine candles where each close higher/lower than its 4th predecessor candle’s close value.

When is there a buy recommendation?

  • When you see 9 consecutive closes “lower” than the close 4 bars prior.
  • An ideal buy is when the low of bars 6 and 7 in the count are exceeded by the low of bars 8 or 9.

See the example below of a buy recommendation

In the following example, we have a TD 9 Buy, Let’s see what happens next

When is there a sell recommendation?

  • When you see 9 consecutive closes “higher” than the close 4 candles prior.
  • An ideal sell is when the the high of bars 6 and 7 in the count are exceeded by the high of bars 8 or 9.

See the example below of a sell recommendation.

Sell by TD Sequential

Another Example of a sell recommendation when the low of the red 1 count is broken. it’s a short play.

Number Indicator / TD Sequential indicator sell

Here is the Result after the TD indicator sell recommendation.

Tone Vays is very famous for using this indicator although Tone modified TD Sequential a little bit.

To try this TD indicator on TradingView, copy-paste this implementation

study("Number Indicator / Thomas DeMark Sequential",overlay=true)transp=input(0)Numbers=input(true)SR=input(true)Barcolor=input(true)TD = close > close[4] ?nz(TD[1])+1:0TS = close < close[4] ?nz(TS[1])+1:0

TDUp = TD - valuewhen(TD < TD[1], TD , 1 )TDDn = TS - valuewhen(TS < TS[1], TS , 1 )plotshape(Numbers?(TDUp1?true:na):na,style=shape.triangledown,text="1",color=green,location=location.abovebar,transp=transp)plotshape(Numbers?(TDUp2?true:na):na,style=shape.triangledown,text="2",color=green,location=location.abovebar,transp=transp)plotshape(Numbers?(TDUp3?true:na):na,style=shape.triangledown,text="3",color=green,location=location.abovebar,transp=transp)plotshape(Numbers?(TDUp4?true:na):na,style=shape.triangledown,text="4",color=green,location=location.abovebar,transp=transp)plotshape(Numbers?(TDUp5?true:na):na,style=shape.triangledown,text="5",color=green,location=location.abovebar,transp=transp)plotshape(Numbers?(TDUp6?true:na):na,style=shape.triangledown,text="6",color=green,location=location.abovebar,transp=transp)plotshape(Numbers?(TDUp7?true:na):na,style=shape.triangledown,text="7",color=green,location=location.abovebar,transp=transp)plotshape(Numbers?(TDUp8?true:na):na,style=shape.triangledown,text="8",color=green,location=location.abovebar,transp=transp)plotshape(Numbers?(TDUp==9?true:na):na,style=shape.triangledown,text="9",color=green,location=location.abovebar,transp=transp)


//------------//// Sell Setup ////------------//priceflip = barssince(close<close[4])sellsetup = close>close[4] and priceflipsell = sellsetup and barssince(priceflip!=9)sellovershoot = sellsetup and barssince(priceflip!=13)sellovershoot1 = sellsetup and barssince(priceflip!=14)sellovershoot2 = sellsetup and barssince(priceflip!=15)sellovershoot3 = sellsetup and barssince(priceflip!=16)

//----------//// Buy setup////----------//priceflip1 = barssince(close>close[4])buysetup = close<close[4] and priceflip1buy = buysetup and barssince(priceflip1!=9)buyovershoot = barssince(priceflip1!=13) and buysetupbuyovershoot1 = barssince(priceflip1!=14) and buysetupbuyovershoot2 = barssince(priceflip1!=15) and buysetupbuyovershoot3 = barssince(priceflip1!=16) and buysetup

//----------//// TD lines ////----------//TDbuyh = valuewhen(buy,high,0)TDbuyl = valuewhen(buy,low,0)TDsellh = valuewhen(sell,high,0)TDselll = valuewhen(sell,low,0)

//----------//// Plots ////----------//

plot(SR?(TDbuyh ? TDbuyl: na):na,style=circles, linewidth=1, color=red)plot(SR?(TDselll ? TDsellh : na):na,style=circles, linewidth=1, color=lime)barcolor(Barcolor?(sell? #FF0000 : buy? #00FF00 : sellovershoot? #FF66A3 : sellovershoot1? #FF3385 : sellovershoot2? #FF0066 : sellovershoot3? #CC0052 : buyovershoot? #D6FF5C : buyovershoot1? #D1FF47 : buyovershoot2? #B8E62E : buyovershoot3? #8FB224 : na):na)

An ideal setup tends to be a better indicator, as regular setups often are perfected at a later date.

And you should understand that a setup does not guarantee a reaction in the opposite direction. If the momentum is too strong in the trend direction, a reversal could very well be cancelled.