What a 3-day TD Sequential “Sell” Signal Means
The TD Sequential (aka DeMark Sequential) runs two counts on bar charts—a 9-bar Setup and a 13-bar Countdown—to pinpoint exhaustion in an existing trend. On a sell signal, you typically see a “9” complete on the Setup phase, sometimes followed by the “13” on the Countdown phase, suggesting buyers have been fully depleted and a corrective pullback is likely TradingCenter.orgHome - GoCharting.
Setup (9-count): On a bearish flip, each close is higher than the close four bars earlier; completion at “9” marks a potential local high.
Countdown (13-count): After “9,” the indicator counts non-consecutive bars comparing current closes to two bars earlier; reaching “13” intensifies the reversal signal.
Because this is on the 3-day chart, each “bar” spans three days—so a completed Setup here reflects exhaustion over ~27 days of price action. That makes the signal more significant than, say, a 4-hour or daily Setup, but also slower to resolve.
Context & What to Watch Next
Potential Retracement Zones: Look to recent support levels or the nearest TDST lines (which mark recent swing highs/lows) as initial targets for any pullback DeMARK Analytics.
Volume Confirmation: A meaningful drop on increased volume would reinforce the bearish exhaustion thesis.
Risk Management: Stops above the recent high (where the “9” printed) can cap potential losses if price invalidates the Setup.
In Summary
The appearance of a TD Sequential sell Setup on Bitcoin’s 3-day chart suggests that, after nearly a month of upward pressure, a corrective retracement could be imminent. Traders often use this signal to:
Take partial profits on long positions,
Scale into short positions with tight stops above the Setup high, or
Wait for a deeper pullback to re-enter longs at better prices.
As always, blend this with other tools—trendlines, RSI/MACD, or fundamental catalysts—to avoid over-reliance on any single indicator.