Identify a turning point using TDS9
Basically there are 3 steps to get a buy signal using daily data:
1) Setup. There must be a decline of at least nine or more consequtive.
2) Intersection. The high of any day on or after the eighth day of the set up must be greater than the low of any day three or more days earlier.
3) Countdown. Count the number of days in which we close lower than the close two days ago (doesn’t need to be continuous).
When the countdown reaches 13, we get a buy signal.
Sound confusing. Fortunately moomoo chart "NINE" can count for you. I used Tesla stock as an example.
Limitation
1. The challenging part is how to identify a "buy" signal for decline trend and a "sell" signal for rising trend.
2. The daily data to observe the reversal trend is very long - can be as long as 3 weeks. Long duration which most retail investors is not willing to use.
Bottom line
I think TDS9 is a useful tool to predict price reversal. But it's challenging to use it to time the market for day trader - need experience and good judgement.
Source:
TSD9 explanation cmtassociation....
1) Setup. There must be a decline of at least nine or more consequtive.
2) Intersection. The high of any day on or after the eighth day of the set up must be greater than the low of any day three or more days earlier.
3) Countdown. Count the number of days in which we close lower than the close two days ago (doesn’t need to be continuous).
When the countdown reaches 13, we get a buy signal.
Sound confusing. Fortunately moomoo chart "NINE" can count for you. I used Tesla stock as an example.
Limitation
1. The challenging part is how to identify a "buy" signal for decline trend and a "sell" signal for rising trend.
2. The daily data to observe the reversal trend is very long - can be as long as 3 weeks. Long duration which most retail investors is not willing to use.
Bottom line
I think TDS9 is a useful tool to predict price reversal. But it's challenging to use it to time the market for day trader - need experience and good judgement.
Source:
TSD9 explanation cmtassociation....
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LIVE2LEARN : Nice job. good example. really helped clarify . thank you.
Panda stack :