TD Sequential Counts and Retracements for Potential Reversal Entries

Summary

This strategy uses comparisons between each close and the close four candles earlier to count consecutive directional moves. It marks the eighth and ninth counts as potential reversal points, then describes checking whether a breakout persists into counts 13 through 16 to distinguish sustained moves from failed ones. The relationship between 10-period and 20-period moving averages is presented as an additional trend reference.

The document provides a BTC/USDT futures backtest configuration covering about a year, but gives no performance statistics or trade-level evidence. There is a material gap between the description and the supplied implementation: the code plots TD counts and reference levels, yet its entries are triggered by stored TD buy or sell levels, and the moving averages are calculated without filtering entries. The stated retracement validation also does not visibly gate those orders. The document warns that choppy markets can produce false signals, parameters may need adjustment, and no explicit stop loss is defined.

Key ideas

• The TD count compares each closing price with the close four candles earlier.
• The eighth and ninth counts are described as potential reversal points.
• The strategy description treats persistence through later counts as confirmation after a breakout.
• Ten-period and 20-period moving averages are proposed as trend context, though they do not gate orders in the provided code.
• The document gives a BTC/USDT futures test setup but no performance results.

Tags

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