New edge proposed: tom_de_mark_sequential_count_9_reversal — E8 Intelligence Research

{ "name": "tom_de_mark_sequential_count_9_reversal", "source": "Tom DeMark's Sequential (TD Sequential) as popularized in 'DeMark on Day Trading Options' and later by Thomas Bulkowski", "type": "entry_engine", "rule": "After a completed TD Sequential setup count of 9 consecutive closes higher than the close 4 bars earlier (buy) or lower than the close 4 bars earlier (sell), enter on the next bar open against the trend if the bar is a reversal candle (close in opposite direction from prior bar) and RSI14 is below 30 (buy) or above 70 (sell)", "pseudocode": "if setup_buy_count >= 9 and close < close[1] and rsi14 < 30: entry = next_open setup_sell_count >= 9 and close > close[1] and rsi14 > 70: entry = next_open", "why_it_works": "The sequential count quantifies trend exhaustion per DeMark's research on price/time relationships, and the RSI extreme filters for overstretched moves prone to snap-back reversals." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com