Thomas DeMark is a researcher in stock and commodities market and is advisor to legendary traders/institutions/US pention funds such as Larry Williams,Paul Tudor Jones,George Soros,Rockefeller Corporation ,Some very large commodity and base metal traders.He has done work on Sequential,Combo,Trendlines,Oscillators retracements etc.I have worked with sequential in time frames from daily,hourly,5 min etc but I find daily and hourly work pretty well ,other timeframes the accuracy gets lost.
The system has three components,
1) SET UP : Sell Set up is a series of minimum 9 consecutive bars in which the close is equal to or higher than close of the bar 4 bars ago. These have to be consecutive bars.If after 2-3 bars,the relationship is broken,you have to start this phase all afresh
Also set up requires min 9 bars,but set up continues afterwarda 10,11,12,13,14 bars and so on.
BUY set up is a mirror image of sell set up ie it requires minimum 9 consecutive bars whose closing is less than or equal to closing of the bar 4 bars back.
2 ) Intersection : This stage requires that the 7,8,9 bar of set up must intersect (range overlap ) with bars 3,4,5,6 bars back.This ensures that the next phase is postponed till mkt applies some kind of brakes to the price activity and there is no run-away mkt action.