{"id":1454,"date":"2025-11-16T07:30:49","date_gmt":"2025-11-16T07:30:49","guid":{"rendered":"https:\/\/globaleasyforex.com\/blog\/?p=1454"},"modified":"2026-03-01T15:08:34","modified_gmt":"2026-03-01T15:08:34","slug":"td-sequential-what-it-is-and-how-to-use-it","status":"publish","type":"post","link":"https:\/\/globaleasyforex.com\/blog\/td-sequential-what-it-is-and-how-to-use-it\/","title":{"rendered":"TD Sequential, What it is and How to use it"},"content":{"rendered":"\n<p>This article is a detailed guide to <strong>TD Sequential (Tom DeMark Sequential)<\/strong> \u2014 including how it works, how to use it for real trading, examples, signals, entry rules, stop loss, take-profit logic, plus pros and cons.<\/p>\n\n\n\n<p>This explanation is structured so it is easy to understand. This is not financial advice or trade advice, only explanation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is TD Sequential?<\/h2>\n\n\n\n<p>TD Sequential is a <a href=\"https:\/\/globaleasyforex.com\/blog\/how-to-deal-with-trend-exhaustion-and-over-crowded-trades\/\" data-type=\"post\" data-id=\"1448\">trend exhaustion<\/a> and reversal indicator created by Tom DeMark.<br>It does not predict trends \u2014 instead, it identifies when a trend is likely to end.<\/p>\n\n\n\n<p>It is widely used in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/globaleasyforex.com\/blog\/7-major-forex-pairs-and-what-is-unique-for-each\/\" data-type=\"post\" data-id=\"1464\">Forex<\/a><\/li>\n\n\n\n<li>Stock indices<\/li>\n\n\n\n<li><a href=\"https:\/\/globaleasyforex.com\/blog\/what-is-a-commodity-market\/\" data-type=\"post\" data-id=\"1605\">Commodities<\/a><\/li>\n\n\n\n<li>Crypto (especially <a href=\"https:\/\/globaleasyforex.com\/blog\/what-is-bitcoin-cryptocurrency-and-digital-tokens\/\" data-type=\"post\" data-id=\"1592\">Bitcoin<\/a>)<br>Because crypto trends extend abnormally, TD Sequential is extremely popular there.<\/li>\n<\/ul>\n\n\n\n<p><strong>Why TD Sequential Is Valuable<\/strong><\/p>\n\n\n\n<p>Most <a href=\"https:\/\/globaleasyforex.com\/blog\/what-are-indicators-how-many-types-do-they-have-and-overview-of-popular-indicators\/\" data-type=\"post\" data-id=\"3974\">indicators<\/a> follow price.<br>TD Sequential is different \u2014 it detects trend exhaustion before <a href=\"https:\/\/globaleasyforex.com\/blog\/what-is-a-trend-reversal-what-causes-it-and-how-traders-identify-it\/\" data-type=\"post\" data-id=\"3568\">reversal happens<\/a>, giving early warning signals.<\/p>\n\n\n\n<p>It helps you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Exit before the trend reverses<\/li>\n\n\n\n<li>Time near-perfect tops and bottoms<\/li>\n\n\n\n<li>Avoid entering late into trends<\/li>\n\n\n\n<li>Spot pullbacks and trend resets<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-right\">.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How TD Sequential Works<\/h2>\n\n\n\n<p>TD Sequential has two major phases:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Phase 1: The Setup (1\u20139 Count)<\/h3>\n\n\n\n<p>This part measures short-term trend exhaustion.<\/p>\n\n\n\n<p>Buy Setup (Bullish Setup 1 to 9)<\/p>\n\n\n\n<p>Occurs when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Candle closes lower than the close 4 candles earlier<\/li>\n\n\n\n<li>Count increases: 1 \u2192 2 \u2192 \u2026 \u2192 9<\/li>\n\n\n\n<li>At count 9, market often becomes oversold, reversal or pullback is likely.<\/li>\n<\/ul>\n\n\n\n<p>Sell Setup (<a href=\"https:\/\/globaleasyforex.com\/blog\/what-are-bullish-uptrend-and-bearish-downtrend-in-financial-markets\/\" data-type=\"post\" data-id=\"3028\">Bearish<\/a> Setup 1 to 9)<\/p>\n\n\n\n<p>Occurs when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Candle closes higher than the close 4 candles earlier<\/li>\n\n\n\n<li>Count increases: 1 \u2192 2 \u2192 \u2026 \u2192 9<\/li>\n\n\n\n<li>At 9, the trend is overheated \u2192 reversal or pullback likely.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Phase 2: The Countdown (1\u201313 Countdown)<\/h3>\n\n\n\n<p>If the trend is strong enough to continue beyond Setup 9, the system enters Countdown phase.<\/p>\n\n\n\n<p>Countdown Rules:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For a Buy Countdown, the candle must close lower than the low two candles earlier.<br>For a Sell Countdown, the candle must close higher than the high two candles earlier.<\/li>\n\n\n\n<li>The count goes from 1 \u2192 13 (not necessarily consecutive).<\/li>\n<\/ul>\n\n\n\n<p>Significance:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A completed 13 is one of the strongest trend reversal signals in <a href=\"https:\/\/globaleasyforex.com\/blog\/what-is-technical-analysis-and-difference-in-stocks-vs-forex-vs-commodities\/\" data-type=\"post\" data-id=\"2490\">technical analysis<\/a>.<\/li>\n\n\n\n<li>A TD13 often precedes major turning points in Forex, <a href=\"https:\/\/globaleasyforex.com\/blog\/stock-and-equity-the-foundation-of-corporate-ownership\/\" data-type=\"post\" data-id=\"2618\">stocks<\/a>, and crypto.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-right\">.<\/p>\n\n\n\n<p><strong>TD Sequential Buy Signal Summary<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buy Setup reaches 9<\/li>\n\n\n\n<li>OR Countdown completes 13<\/li>\n\n\n\n<li>Ideal when price hits support or shows bullish divergence<\/li>\n<\/ul>\n\n\n\n<p><strong>TD Sequential Sell Signal Summary<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sell Setup reaches 9<\/li>\n\n\n\n<li>OR Countdown completes 13<\/li>\n\n\n\n<li>Ideal when price hits resistance or shows bearish <a href=\"https:\/\/globaleasyforex.com\/blog\/what-is-divergence-in-financial-markets\/\" data-type=\"post\" data-id=\"3775\">divergence<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-right\">.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Use TD Sequential in Trading (Practical Methods)<\/h2>\n\n\n\n<p>Below are the 4 most effective methods traders actually use.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Trading the Setup 9 Reversal<\/h3>\n\n\n\n<p>Sell Setup Example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Market rallies strongly<\/li>\n\n\n\n<li>9th candle closes higher than the close 4 candles earlier<\/li>\n\n\n\n<li>Setup 9 prints \u2192 Overbought<\/li>\n<\/ul>\n\n\n\n<p>How to trade:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Enter sell on next candle after Setup 9<\/li>\n\n\n\n<li>Place stop-loss above the swing high<\/li>\n\n\n\n<li>Take profit at the nearest support or 1 ATR<\/li>\n<\/ul>\n\n\n\n<p>Buy Setup Example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Market falls for 9-count sequence<\/li>\n\n\n\n<li>Setup 9 prints \u2192 Oversold<\/li>\n<\/ul>\n\n\n\n<p>How to trade:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Enter buy after 9th candle closes<\/li>\n\n\n\n<li>Place stop-loss below swing low<\/li>\n\n\n\n<li>Exit at resistance or after +1 ATR<\/li>\n<\/ul>\n\n\n\n<p>Why this works:<br>TD Setup 9 identifies short-term exhaustion, similar to RSI overbought\/oversold, but more precise.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Trading the Countdown 13 Reversal<\/h3>\n\n\n\n<p>This is the core power of TD Sequential.<\/p>\n\n\n\n<p>When TD13 prints:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trend has pushed to exhaustion<\/li>\n\n\n\n<li>A major reversal is likely<\/li>\n\n\n\n<li>Top or bottom may be forming<\/li>\n<\/ul>\n\n\n\n<p>Example:<\/p>\n\n\n\n<p>If EUR\/USD rallies 50 candles straight and hits TD13 \u2192 Expect correction or reversal.<\/p>\n\n\n\n<p>How to trade:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Enter opposite direction at candle close<\/li>\n\n\n\n<li>Place stop-loss beyond extreme high\/low<\/li>\n<\/ul>\n\n\n\n<p>Targets:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2\u00d7 ATR<\/li>\n\n\n\n<li>Recent <a href=\"https:\/\/globaleasyforex.com\/blog\/what-is-support-and-resistance-in-trading\/\" data-type=\"post\" data-id=\"2880\">support\/resistance<\/a><\/li>\n\n\n\n<li>Fibonacci 38\/61%<\/li>\n<\/ul>\n\n\n\n<p>Warning: TD13 = big turning point, but price can continue briefly before reversing (blow-off tops or selling climaxes).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Use TD Sequential for Trend Safety (Avoid Bad Entries)<\/h3>\n\n\n\n<p>This is a powerful but underrated use.<\/p>\n\n\n\n<p>If you see:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Setup 8 or 9<\/li>\n\n\n\n<li>Or Countdown 10\u201313 forming<br>Then avoid entering in the same direction.<\/li>\n<\/ul>\n\n\n\n<p>Example:<br>If GBP\/USD shows Setup 9 sell \u2192 Do NOT buy, even if trend seems bullish.<br>You are entering near the top \u2192 danger zone.<\/p>\n\n\n\n<p>This drastically improves entry precision.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Combine TD Sequential with Support\/Resistance or Divergence<\/h3>\n\n\n\n<p>The most profitable trades occur when TD signals align with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Divergence (MACD\/RSI)<\/li>\n\n\n\n<li>Support\/resistance<\/li>\n\n\n\n<li>Supply\/demand zones<\/li>\n\n\n\n<li>Trendlines<\/li>\n<\/ul>\n\n\n\n<p>Example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Price touches support<\/li>\n\n\n\n<li>Bullish divergence on RSI<\/li>\n\n\n\n<li>Setup 9 Buy prints<br>This is a high-probability bottom.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Example Scenario (Forex: USD\/JPY)<\/h3>\n\n\n\n<p>Imagine USD\/JPY rallies heavily for 20\u201330 candles:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Setup 9 Sell prints \u2192 Short-term exhaustion signal<\/li>\n\n\n\n<li>Traders expect small pullback<br>Then price continues rising:<\/li>\n\n\n\n<li>Countdown 13 Sell completes<\/li>\n<\/ul>\n\n\n\n<p>This is a major reversal warning.<\/p>\n\n\n\n<p>Traders may:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Enter sell at TD13<\/li>\n\n\n\n<li>Stop-loss above highest wick<\/li>\n\n\n\n<li>First take-profit: 2\u00d7 ATR<\/li>\n\n\n\n<li>Second take-profit: 50% <a href=\"https:\/\/globaleasyforex.com\/blog\/fibonacci-analysis-in-financial-markets-theory-and-debate\/\" data-type=\"post\" data-id=\"1828\">Fibonacci retracement<\/a><\/li>\n<\/ul>\n\n\n\n<p>This often catches huge reversals, especially on H4 or Daily charts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Pros and Cons of TD Sequential<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Pros<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Predicts trend exhaustion before the crowd sees it<\/li>\n<\/ol>\n\n\n\n<p><a href=\"https:\/\/globaleasyforex.com\/blog\/10-top-indicators-in-the-forex-market-2025-and-why-they-matter\/\" data-type=\"post\" data-id=\"2795\">Most indicators<\/a> lag.<br>TD Sequential can warn before the reversal begins.<\/p>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>Excellent for catching tops and bottoms<\/li>\n<\/ol>\n\n\n\n<p>Particularly valuable in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Crypto bull runs<\/li>\n\n\n\n<li>Forex extended trends<\/li>\n\n\n\n<li>Stock market bubbles<\/li>\n<\/ul>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Works on all markets &amp; <a href=\"https:\/\/globaleasyforex.com\/blog\/timeframes-in-trading-the-lens-of-market-analysis\/\" data-type=\"post\" data-id=\"2527\">timeframes<\/a><\/li>\n<\/ol>\n\n\n\n<p>But most reliable on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>H1<\/li>\n\n\n\n<li>H4<\/li>\n\n\n\n<li>Daily<\/li>\n<\/ul>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li>Helps avoid late trend entries<\/li>\n<\/ol>\n\n\n\n<p>Setup 9 and Countdown 13 zones warn you when a trend is too mature to enter.<\/p>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li>Complements other indicators perfectly<\/li>\n<\/ol>\n\n\n\n<p>MACD divergence + TD13 = extremely powerful reversal signal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Cons<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Very sensitive in choppy markets<\/li>\n<\/ol>\n\n\n\n<p>TD Sequential works best in clear directional movement.<br>In <a href=\"https:\/\/globaleasyforex.com\/blog\/what-is-a-sideways-trend-what-causes-it-and-its-effects\/\" data-type=\"post\" data-id=\"2739\">sideways markets<\/a>, it creates many false 9 counts.<\/p>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>TD13 does not guarantee immediate reversal<\/li>\n<\/ol>\n\n\n\n<p>Price can extend beyond TD13 before reversing (e.g., blow-off tops).<\/p>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Requires practice to interpret<\/li>\n<\/ol>\n\n\n\n<p>Beginners may miscount candles or misidentify setups.<\/p>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li>Not a standalone system<\/li>\n<\/ol>\n\n\n\n<p>It needs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Support\/resistance<\/li>\n\n\n\n<li><a href=\"https:\/\/globaleasyforex.com\/blog\/what-is-trends-and-ways-traders-identify-them\/\" data-type=\"post\" data-id=\"2190\">Trend<\/a> context<\/li>\n\n\n\n<li>Volume or momentum indicators<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">When TD Sequential Works Best<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Strong trending markets<\/li>\n\n\n\n<li><a href=\"https:\/\/globaleasyforex.com\/blog\/forex-trading-or-crypto-trading\/\" data-type=\"post\" data-id=\"1340\">Crypto<\/a> markets<\/li>\n\n\n\n<li><a href=\"https:\/\/globaleasyforex.com\/blog\/forex-pairs-major-minor-exotic-and-beyond\/\" data-type=\"post\" data-id=\"2806\">Forex pairs<\/a> after news events<\/li>\n\n\n\n<li>Stocks after earnings or <a href=\"https:\/\/globaleasyforex.com\/blog\/how-to-cope-with-sudden-price-spikes-in-stock-forex-and-commodity-trading\/\" data-type=\"post\" data-id=\"1409\">volatility spikes<\/a><\/li>\n\n\n\n<li>Reversal trading strategies<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">When It Is Less Effective<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sideways (range-bound) markets<\/li>\n\n\n\n<li>Low-volume markets<\/li>\n\n\n\n<li>One-candle spikes or news candles<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>This article is a detailed guide to TD Sequential (Tom DeMark Sequential) \u2014 including how it works, how to use it for real trading, examples, signals, entry rules, stop loss, take-profit logic, plus pros and cons. This explanation is structured so it is easy to understand. This is not financial advice or trade advice, only [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":1442,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[56,146],"tags":[9,69,72],"class_list":["post-1454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-forex","category-technical-knowledge","tag-forex","tag-technical-analysis","tag-trading-psychology"],"_links":{"self":[{"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/posts\/1454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/comments?post=1454"}],"version-history":[{"count":3,"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/posts\/1454\/revisions"}],"predecessor-version":[{"id":3979,"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/posts\/1454\/revisions\/3979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/media\/1442"}],"wp:attachment":[{"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/media?parent=1454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/categories?post=1454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globaleasyforex.com\/blog\/wp-json\/wp\/v2\/tags?post=1454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}