By Volmike


TDST Lines: Daily Price Gates of Momentum

Within the VOLMIKE.COM system, TDST (TD Sequential Trend) Lines, from the acclaimed work of Tom DeMark, serve as crucial daily price gates. These lines, initially established by distinct patterns in raw price action, then become fixed levels that dictate powerful signals based on the movement of Volatility Mike.

They represent a sophisticated bridge, confirming when Mike's dynamic momentum decisively interacts with pivotal price structure.

TD Sequential Setups: Foundational Price Patterns

Our system first identifies TD Sequential setups (like the "Buy Setup" or "Sell Setup" counts up to 9). These underlying setups are calculated on the raw Close price of the asset. They systematically identify potential exhaustion points or inflection points in the price itself, suggesting where a directional shift might occur after a sustained trend.

TDST Lines: Fixed Price Gates Derived from Price Structure

Upon the completion of a TD Sequential 9-count setup in raw price, a specific TDST (TD Sequential Trend) Line is established:

  • 🟢 Green Horizontal Line: Buy TDST.
    • Formation: This line is typically set at the highest high of the specific preceding bars (e.g., bar 8 or 7) within the completed TD Sequential Buy Setup.
    • Purpose: It acts as a static, significant support gate for price after a potential bearish sequence.
  • 🔴 Red Horizontal Line: Sell TDST.
    • Formation: This line is typically set at the lowest low of a specific preceding bar (e.g., bar 8) within the completed TD Sequential Sell Setup.
    • Purpose: It acts as a static, significant resistance gate for price after a potential bullish sequence.

Once these Buy or Sell TDST values are formed, they are plotted as fixed horizontal lines on the chart and remain active throughout the day, serving as concrete reference points for where momentum may encounter decisive reactions.

The Crossing Signals: Mike's Interaction with Price Gates (Hole 🕳️ & Key 🔑)

This is where the unique power of TDST lines in our system comes into play. The Key (🔑) and Hole (🕳️) emojis are triggered not by raw price crossing these lines, but by Mike's momentum crossing and confirming these price-derived gates. A 2-bar confirmation is required for these signals to appear.

  • 🔑 The Key Emoji:

    • Appearance: The Key (🔑) emoji appears when Volatility Mike crosses above a Buy TDST Line and sustains it for 2 bars.
    • Meaning: This signals a powerful breakout. It means that Mike's upward momentum is strong enough to decisively push price through a key support gate identified by a prior bullish setup. It's like Mike has "unlocked" new higher momentum levels.

  • 🕳️ The Hole Emoji:

    • Appearance: The Hole (🕳️) emoji appears when Volatility Mike crosses below a Sell TDST Line and sustains it for 2 bars.
    • Meaning: This signals a significant breakdown. It means that Mike's downward momentum is strong enough to decisively push price through a key resistance gate identified by a prior bearish setup. It's like Mike has "fallen into a hole" towards lower momentum levels.

These emojis are immediately plotted when the confirmed cross occurs, providing real-time alerts to critical breaches of these important structural boundaries by momentum.

Importance for Marengo Setups

TDST Lines and their associated "Key" and "Hole" emojis are invaluable for our "Marengo" setups because they:

  • Validate Momentum Against Structure: They confirm that Mike's velocity is not only strong but is also decisively breaking through or respecting significant price-based structural levels.
  • Provide Static Reference Points: Unlike dynamic indicators, TDST Lines offer fixed daily levels that become clear targets, invalidation points, or re-entry zones for trade management.
  • Enhance Confluence: When a "Marengo" signal aligns with Mike triggering a Key (🔑) or Hole (🕳️) emoji, it adds a powerful layer of high-conviction confirmation to the trade's potential for follow-through.

By understanding the "Daily Price Gates" set by TDST Lines and how Mike interacts with them, traders gain crucial insights into significant price/momentum breaches and unlock powerful entry and management opportunities within the VOLMIKE.COM system.