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Greetings O-Listers,
Doing some research on DeMark's Sequential.
I thought I understood most of the rules until I read his description in
"New Market Timing Techniques" after first reading "New Science of Tech
Analy". He describes recycling in New Science as "a subsequent setup.."
(ie 9 count) .."forming simultaneously as the countdown process is
taking place. The new setup replaces the original setup...the original
setup and countdown are repealed...". I interpret this to mean that a
setup can be recycled once you reach a new 9 count. So, you could
complete a 9 count setup, start the 13 count countdown, and if before
you complete the countdown you complete another 9 count, then the
original 9 count is "recycled" and the countdown starts over.
However, in "New Market.." he shows examples of setup counts extending
far beyond 9. And his examples and text suggest that recycling doesn't
happen until you've had a price flip in the direction of the setup (ie a
C < L[4] for a sell setup or a C>H[4] for a buy setup).
Can someone experienced in interpretting TD's material set me straight?
What condition(s) are required for "recycling"?
Regards,
Bill Vedder
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