Another gem from ST sir, explaining the concept in a holistic way (Wholistic
)
http://www.traderji.com/technical-analysis/23286-thomas-demark-sequential-system-26.html#post571597
"My view is when the market gets set up in a trend....its final top/bottom is decided , the course it takes depends on news, Government policies,economic data etc and if no major change in supply/demand equation, then it will top/bottom at a level which is decided well in advance based on how the trend gets kicked off...like a football when kicked in the air, has a fixed trajectory depending on how strongly it is kicked. Sequential and Combo help us to zero in on this final location of top/bottom .I tend to hold this belief because many times Sequential and Combo both different techniques ( and different ways of counting ) identify the tops/bottoms on exactly the same bar...isn't it amazing ?
There is cycles angle also to it...we all know that cycles exist in the markets and sequential is a mechanical way of finding cycle tops/bottoms rather than going with 60 days,180 days etc fixed days cycles. This way we continuously monitor the progress of the market in the current ongoing cycle."