Demark Sequential - is an indicator that shows a structure of the trend, its start point and main turning points. And it check it's conditions on the beginning of the candle, so it will be never repainted.
This indicator hasn't any complex formulas, only some bars countdown, but it can be very helpful, especially with some levels indicator such as Fibo or Gann levels (like this).
Algorithm is so simple, but powerful:
- Setup - starting when current bar closed higher (or lower for short) then close of 4th bar before (see screenshot 2).
- Then, if price walks in same direction, we can start counting, and it will be finished after 9 (or more) consecutive bars with the same conditions (see screenshot 3).
- Next stage started from "intersection": low (high for downtrend) of current bar (8th or more in sequence) breaks high of the bar shifted at least on 3th from working (first) bar (see screenshot 4).
- Now can be started an countdown. We need 13 bars that closed higher (lower) then close of 2 bars ago. This bars do not obliged to be successive (see screenshot 5).
- Signal will be coming when 13th candle will be formed (see screenshot 6).
- So you can enter in position - by close of signal candle, or by open of next candle - for agressive tactics, or by the extremum of the bar that formed by the paragraph 1 (see screenshot 7).
- You can fix you profit by the next signal or, for example, by some levels such as fibo or Gann (see screenshots 8,9).
You can get voice notice about all of events: setup first bar, setup ninth bar, intersection, countdown started, signal bar formed.
I think thet all of parameters has "talking" names. For example:
- Setup_Distance = 4; // Distance between setup candles.
- Setup_Limit = 9; // How many candles we need to finish setup counting.
- Intersection_Min_Distance = 3; // Minimal distance for intersection.
- Countdown_Distance = 2; // What distance between candles we need when countdown started.
- Countdown_Limit = 13; //How many candles we need for signal arrow.
Other sections allows you to customize all of aspects: what do you want to see or listen.