The sequential process has thre steps and they are set up,intersection and count down.Thaking example of sell set up,it requires minimum 9 bars where close is greater than close 4 bars ago.This 9 bars is absolute must.But after 9 bars,if there is intersection at 8th or 9th bar,the count down can start from bar 9 if it satisfies countdown condition that close is greater than high 2 bars ago.Note the following :
1) 9 set up bars have to be consecutive.The count down bars need not be consecutive and in most cases they will not be consecutive.
2) DeMark has said that for stocks the intersection is a must but for indices he is not very rigid ( initially he was rigid for indices also.I observe both,with and without intersection.
3) Once the 9 min setup bars are done,the set up does not end there...it continues till we get a flip bar and the length of the set up is from low to high of the bar sequence which followed the relationship.
4) The count down does not wait till the set up is perfected...it starts from 9th set up bar if CD conditions are met.
5) The imperfect set up does not make the set up inferior for the sequential process...it is equally potent as a perfected set up...then why we see perfection? It is generally perfected in next 4 bars. But in some setups particularly on lower timeframe the set up is not perfected at all and the CD 13 is achieved.
6) It is not uncommon to get 2 or 3 valid set ups before CD 13 is obtained....it is where the length of the set up comes in play.
7) There is a sister system called TDCombo.In steep markets combo works better...many times sequential and combo both give buy/sell on same bar or with 1-2 bars difference.....Combo countdown is done differently...and the conditions are more rigid....first master sequential and then go to Combo.
Smart_trade