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First things first - sorry about the size of this e-mail.
Since there's some interest, maybe the indicators I've included
will be of some use to someone.
As it was pointed out earlier, the original Sequential consists
of Setup, Intersection,
and Countdown. ( BTW, since DeMark published Sequential he's
said that it has become
"flat" due to it's popularity, so he's made some changes. I
believe one of several modifications
he made was to make Intersection optional for futures and index
markets.) I've
included formulae based on my understanding of the original.
The Setup code posted
last week is correct
with regards to his article in Futures, but it's missing one
condition that he
mentioned in his book for the original Sequential.. One thing
I've noticed
about DeMark...sometimes he seems to forget to mention a thing or
two in
subsequent articles, although I don't think it's intentional.
For those that don't know, I believe Sequential was originally
designed to
identify major tops and bottoms, where Setup, while it also at
times performs
the same task, was designed to identify a short-term reversal or
pause in the trend.
The problem with Sequential has always been in running a test,
exploration,
or expert for the entire Sequential indicator. Since DeMark
published
Sequential, twice (I believe) I've seen Equis state on a forum
that it's not possible
to code it using MS language. True or not, it is possible to
code separately all three
components of Sequential. You can get Metastock to test
for Setup and for Intersection, but the problem (for me anyway)
has always been
getting it to give a valid Countdown number during a test,
although Countdown
can be counted manually by using a custom indicator once
Metastock has
given a buy/sell signal for Setup / Intersection.
FWIW, I've included a file (the 3 indicators shown on
accompanying chart) which can be imported into 6.5's Indicator
Builder for the original Setup (including what was missing in the
magazine article, which for lack of a better word I call the
"validation" day), Intersection, and Countdown.
Ken
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