TDS 9 (Tom Demark Sequential 9)

1. Description 

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. 

2. How TDS 9 works

● 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.

3. How to use TDS 9

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.