Time analysis based (no price predictions) on TD Sequential indicator. A break in the sequence invalidates this idea.
The price increases and on the way up we get the respective TD Sequential numbers: 1, 2, 3, 4, 5, 6, 7, and so on.
The bearish signal comes at the moment when the Demark Sequential indicator gives you the number “9”. This means that the price action has closed 9 consecutive candles where each has closed higher than the candle 4 periods earlier.
The signal is even stronger if the highs of candles 8 and 9 exceed the highs of candles 6 and 7.
When you confirm this pattern, this is very likely to result in a pullback in a bearish direction. The strength of the pullback is most likely to be seen during the first four candles after the confirmation of the candle that is marked with “9”.