Tom Demark’s Sequential (tdsql)
Tom Demark’s Sequential is a technical analysis indicator that is used to identify potential trend reversals in the market. This model consists of three phases: Price flip (a signal for a potential trend reversal), Setup (to determine where a new trend is starting and where it is just a correction within the current trend) and Countdown (counts the length of the trend to determine when the trend is fading and a new cycle is forming - the Price flip element).Formula: Tom Demark’s Sequential uses a sequence of higher and lower price movements to determine when the trend is fading and when the market is ready to reverse.Key Takeaways: 1. Tom Demark’s Sequential can be used to identify potential trend reversals with greater precision. 2. Tom Demark’s Sequential is widely used as a standalone tool for trend reversal analysis.3. Tom Demark’s Sequential can be used along with other technical indicators to confirm analysis.Counterarguments: 1. Tom Demark's Sequential is prone to false signals in choppy markets.2. Tom Demark's Sequential has limited use in identifying overbought and oversold conditions.3. Tom Demark's Sequential can be less reliable for long-term trend analysis.