Tom Demark Sequential 9 (TDS 9) is a technical indicator that helps identify a possible trend change. Specifically, if 9 consecutive candles close higher than the previous four, a reversal or correction in a stock's trend is possible.
· When a stock price meets certain trigger conditions for 9 consecutive days, a series of numbers (1–9) will be displayed above or below the candlesticks in order.
· If the conditions are met for 6 consecutive days, a series of numbers (1–6) will appear. If they’re still met on the 7th day, number 7 will be displayed; if not, the previous 6 numbers will disappear.
· Similarly, if the conditions are met on the 9th day, a 9-candle pattern will be generated;
· If not, the previous 8 numbers will disappear.
· In the end, a rising or falling 9-candle pattern forms with numbers displayed above or below the candlesticks, respectively.
The core function of TDS 9 is to help us identify trading opportunities by buying at the potential bottom and selling at the potential top.
· When a rising 9-candle pattern emerges on the chart, the stock price may have downside reversals, indicating that you may need to trim positions.
· In contrast, a falling 9-candle pattern suggests that the price may rebound soon. This can indicate an opportunity to open or increase positions.
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