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![](https://hackernoon.com/hn-images/0*PFNcMpLoaq5mbV0s.)

“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

![](https://hackernoon.com/hn-images/1*z6RwTBkGXOR57n-4P45SrA.png)

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

![](https://hackernoon.com/hn-images/1*KGTfou-RIBuFaIwaPs6DNw.jpeg)

![](https://hackernoon.com/hn-images/1*2Rx4KGxhbwxBDCdJNuZ1kw.jpeg)

**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.

![](https://hackernoon.com/hn-images/1*cEaDgfGaYOAxnbzRVuA8pw.png)

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.

![](https://hackernoon.com/hn-images/1*ADJnaodE96YIqEyhay8fLw.jpeg)

Number Indicator / TD Sequential indicator sell

Here is the Result after the TD indicator sell recommendation.

![](https://hackernoon.com/hn-images/1*oCMGzMyXdWtF-BLTfXozog.jpeg)

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

![](https://pbs.twimg.com/media/DWD2KAPVAAE08Ql.jpg:large)

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\[1\])+1:0  
TS = 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?(TDUp==1?true:na):na,style=shape.triangledown,text="1",color=green,location=location.abovebar,transp=transp)  
plotshape(Numbers?(TDUp==2?true:na):na,style=shape.triangledown,text="2",color=green,location=location.abovebar,transp=transp)  
plotshape(Numbers?(TDUp==3?true:na):na,style=shape.triangledown,text="3",color=green,location=location.abovebar,transp=transp)  
plotshape(Numbers?(TDUp==4?true:na):na,style=shape.triangledown,text="4",color=green,location=location.abovebar,transp=transp)  
plotshape(Numbers?(TDUp==5?true:na):na,style=shape.triangledown,text="5",color=green,location=location.abovebar,transp=transp)  
plotshape(Numbers?(TDUp==6?true:na):na,style=shape.triangledown,text="6",color=green,location=location.abovebar,transp=transp)  
plotshape(Numbers?(TDUp==7?true:na):na,style=shape.triangledown,text="7",color=green,location=location.abovebar,transp=transp)  
plotshape(Numbers?(TDUp==8?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)

plotshape(Numbers?(TDDn==1?true:na):na,style=shape.triangleup,text="1",color=red,location=location.belowbar,transp=transp)  
plotshape(Numbers?(TDDn==2?true:na):na,style=shape.triangleup,text="2",color=red,location=location.belowbar,transp=transp)  
plotshape(Numbers?(TDDn==3?true:na):na,style=shape.triangleup,text="3",color=red,location=location.belowbar,transp=transp)  
plotshape(Numbers?(TDDn==4?true:na):na,style=shape.triangleup,text="4",color=red,location=location.belowbar,transp=transp)  
plotshape(Numbers?(TDDn==5?true:na):na,style=shape.triangleup,text="5",color=red,location=location.belowbar,transp=transp)  
plotshape(Numbers?(TDDn==6?true:na):na,style=shape.triangleup,text="6",color=red,location=location.belowbar,transp=transp)  
plotshape(Numbers?(TDDn==7?true:na):na,style=shape.triangleup,text="7",color=red,location=location.belowbar,transp=transp)  
plotshape(Numbers?(TDDn==8?true:na):na,style=shape.triangleup,text="8",color=red,location=location.belowbar,transp=transp)  
plotshape(Numbers?(TDDn==9?true:na):na,style=shape.triangleup,text="9",color=red,location=location.belowbar,transp=transp)

  
//------------//  
// Sell Setup //  
//------------//  
priceflip = barssince(close<close\[4\])  
sellsetup = close>close\[4\] and priceflip  
sell = 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 priceflip1  
buy = buysetup and barssince(priceflip1!=9)  
buyovershoot = barssince(priceflip1!=13) and buysetup  
buyovershoot1 = barssince(priceflip1!=14) and buysetup  
buyovershoot2 = barssince(priceflip1!=15) and buysetup  
buyovershoot3 = 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.

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