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Sequential is a series of studies designed to identify price exhaustion peaks and troughs. A series of price comparisons are made to identify these prospective turning points.
Sequential is a pattern recognition technique designated to identify both high risk and low risk entry zones. This approach is contratrend since it anticipates areas of price exhaustion which often occur just prior to, or coincident with, price turning points. There are two components to Sequential: the Setup and the Countdown phases. Whereas minor price reversals are generally associated with the completion of Setup, major turning points are typically identified upon completion of Countdown.
A low risk Setup is a series of "X" consecutive trading bar closes less than the close "Y" trading bar closes earlier. These are displayed on a chart as green numbers on each respective bar. Conversely, a high risk Setup is a series of "X" consecutive trading bar closes greater than the close "Y" trading bar closes earlier. These are displayed as red numbers on each respective bar on the chart.
Sequential is a series of studies designed to identify price exhaustion peaks and troughs. A series of price comparisons are made to identify these prospective turning points.
Parameters
For further information on Sequential, please refer to Thomas R. DeMark, The New Science of Technical Analysis, New York: John Wiley & Sons, 1994, Chapter 7, Sequential.