This indicator is a signal for a trend exhaustion. It signals when an underlier is oversold or overbought. It consists of 4 conditions
- The Bearish Price Twist
P(t-9) > P(t-13) && P(t-8)<P(t-12)
- The TD Buy System
∀ P(t-k) < P(t-4-k) where k = 0,…,-8
- Buy Perfection
DayLow of P(t) <= DayLow of P(t-3) && P(t-2)
DayLow of P(t-1) <= DayLow of P(t-3) && P(t-2)
- Support Condition
P(t-i) >= TD Support, where i=0,…,13
If All conditions are True then we have a TD Buy Perfection and set the new TD Support = MIN(P(t-i)) and new TD Resistance = MAX(P(t-i)) for all i.
The TD Sell is correspondingly.
This indicator is a very famous algorithm. According to US & EU copyright law formulas and algorithms cannot be copyrighted. But trademark names are protected. This is why we cannot call it by its original name. But it should be clear from the algorithm which one it is referring to.