Description: This is a hybrid of the TD Setup and Sequential 13 rules, which when combined, allows for an uptrend/downtrend to maintain its count despite sideways PA, Price Flips or 9 recycles.
Usage: No more 9s and 13s entries and exits. Given an upward and downward trend can develop at the same time, entries and exits are determined by breaks in trend count in either direction Aggressive traders, can enter/exit earlier based on count still printing uptrend as PA begins to downtrend or vice versa. Users could can leverage the accompanied Bar Color Scheme and 13 EMA for entries and exits as well:
Bar Color Scheme:
1) Green = Uptrend
2) Red = Downtrend
3) White = Inside Bar (pause in trend)
40 Blue = Slowing/Reverse in trend (either direction)
13 EMA:
Changes color as PA crosses above or below low. Gives overall trend direction. Green is bullish. Red is Bearish. NOTE: All MA are lagging indicators.
Analysis: On this weekly BTC chart price has been up trending for 32 weeks. We had 5 weeks of potential downtrend developing since our top in June. This was broken for one week. The next three weeks, we printed the first RED candle in 9 weeks followed by another red candle last week. Last week’s red candle marks the 3rd candle in all 32 weeks of uptrend. PA action is sitting at support on the 13 EMA, a break and close below it this week could signal the start of a reversal. Thus far, this week we have a green candle and a continuation of the long trend.
Comments: Observations on this strategy are welcome. Please feel free to provide your feedback to further improve it.