This is it, market is due for significant correction – #SPX

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This is it, market is due for significant correction – #SPX

Demark sell signals on several time frames (sequential and combo) combined with the pattern of 13 higher closing bars on both monthly and weekly chart (ATH’s) suggest that US markets are due for significant correction.
The time for buying the dips (BTD) is over… ;o
Trade well.

SP500daytrader

SPX Weekly chart

SPX monthly chart

Live chart:

#SPX – This is it, market due for significant correction. by SP500daytrader on TradingView.com

About the signal:

 

TD Combo
TD Combo is better when you have sharp directional moves, because it requires only thirteen price bars from start to finish compared to TD Sequential which needs at least 22 bars. The criteria for a Setup within TD Combo are the same with those required for a Setup within TD Sequential. The difference is that the count starts at bar 1 of the setup and not from bar 9 and TD Combo requires four conditions to be satisfied simultaneously.

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Requirements for a TD Combo Buy Countdown 
– close lower or equal than the low 2 trading days earlier.
– The low of a countdown day should be less than the previous “trading day‘s” low
– The close of a countdown day should be less than the previous “trading day‘s” close
– The close of a countdowns day should be less than the previous “countdowns day‘s” close
– bars 11,12,13 each one should just close successively lower and the other rules above are not applied

Requirements for a TD Combo Sell Countdown 
– close higher or equal than the high 2 trading days earlier.
– The high of a countdown day should be greater than the previous “trading day‘s” high
– The close of a countdown day should be greater than the previous “trading day‘s” close
– The close of a countdowns day should be greater than the previous “countdowns day‘s” close
– bars 11,12,13 each one should just close successively higher and the other rules above are not applied

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Bearish Price Flip – occurs when the market records a close greater than the close four bars earlier, immediately followed by a close less than the close four bars earlier.
Bullish Price Flip – occurs when the market records a close less than the close four bars before, immediately followed by a close greater than the close four bars earlier.

TDST level – this is the highest high(usually the high of bar 1) for a buy setup or the lowest low(usually the low of bar 1) for sell setup, also called true high/low for a Setup.
– If a move cannot close above or below the TDST level of the most recently completed Setup in the opposite direction that means the momentum is weak and this is just a corrective move.
– If a move closes above/below the TDST level of the most recently completed Setup in the opposite direction that means that the momentum is strong enough and the price should then continue in that direction , and with high probability a TD Countdown will be completed before a reversal occurs.

True low/True high – is the lowest and the highest point for a setup, BUT including gaps before bar 1 and the days after the 9-th bar, qualifying for a setup bar.

(source: http://practicaltechnicalanalysis.blogspot.no/2013/01/tom-demark-sequential.html)

RISK DISCLOSURE:

The risk of loss in trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstance and financial resources. Any advice or information on this website is general advice only – It does not take into account your personal circumstances. Please do not trade or invest based solely on this information. This information is purely for educational use only. Past performance is not necessarily indicative of future results. Trading is not suitable for everyone.


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