Composition of TD index
TD index consists of TD sequence and TD combination, both of which are indispensable. A complete TD sequence prediction process consists of three parts: start-up stage, crossover condition and counting stage. After a series of continuous start-ups, the trend began to consider the cross condition, and began to enter the counting stage from the K line that met the cross condition.
The Danish trading system contains hundreds of indicators, among which TD sequence is the most widely used. The principle of TD sequence is that when the price keeps falling, the closing price of nine consecutive K-lines is lower than the closing price of the fourth K-line in front of it, and the corresponding numbers (usually 1 to 13) are marked below the K-lines.
Finally, mark 1 root as 9 or 13. When 9 or 13 appears, the price has a high probability of rebounding. On the other hand, when the price continues to rise, the probability of TD appearing as 9 or 13 is greater, and there will be a callback decline. If it is interrupted midway, the counting is invalid and the K line will count again.