TD referred to this quicker trading technique as
Trading the Nines
The purpose of this counting is supposed to catch
Reversals and is ideal for short swing traders on daily TF.
On lower TF, there wasn't explicit indication but 5m has been pretty effective. Although I've revised the conditions to be a bit more stricter.
Conditions:
1. The TD SETUP rules apply in the same way for TD Buy and TD sell.
Nince consecutive closes are either lower/higher than four bars earlier.
2. In TD's own words, 1. Low of Day 9 should be lower than Day 8 & Day 7 but
most importantly Day 6.
If day 6 condition isn't met then from alot of his exp, next bars will continue lower. (Market cleans everybody out)
(Vice-vera in TD SELL Setup)
Reversals:
If Condition 2 is satisfied, then bar 10 onwards will be trending reversing bars.
Generally, bar 10 will be a violent Wide Range in opp. direction, or within the next three bars.
If condition 2 fails, bar 10 or the next three bars continue in the same trend and the reversal has failed.
My adaptation:
The Power of Nine is another way to refer to it, I like this one better
I make the signal even more stronger by having consecutive LH-LL and HL-HH.
This ensures consistency on lower TF like 5m or 3m. I've seen a few times on 15m BNF but that occurrence is rare.