Adapting TD Sequence and Combo Counts for A-Share Timing

Summary

The document presents a modified TD-style timing method for Chinese A-share indices. It frames TD Sequence and TD Combo as trend exhaustion tools: a setup identifies a sustained rise or fall by comparing closing prices with those from a fixed number of sessions earlier, then a countdown seeks signs that the move is weakening. The author says the traditional version may not predict the domestic market well and motivates adapting its parameters and counting rules, but supplies no quantified study results.

In the Sequence version, two counts compare each close with the close two bars earlier; a signal occurs when one reaches a chosen threshold or the other reaches half that threshold. The Combo version uses close and high/low comparisons, plus the close on the first countdown day, with priority given to its first count when both qualify. These rules generate buy signals after declines and sell signals after advances. The document does not specify parameter values or provide backtest details, so the proposed reversal timing remains a hypothesis to validate on the intended index and sample.

Key ideas

• The setup phase detects a sustained move by comparing consecutive closes with closes a fixed interval earlier.
• The Sequence countdown compares each close with the close two sessions earlier and uses two counters.
• A buy or sell signal is triggered when the first counter reaches its threshold or the second reaches half that threshold.
• The Combo countdown also checks prior highs and lows and the close on its first day, prioritizing its first counter if both qualify.
• The document claims the traditional rules may need adjustment for A-shares but gives no parameter values or quantified validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.