A 'perfected' TD Setup requires bars 8 or 9 to trade below (for buy) or above (for sell) the low/high of bars 6 and 7. This extra qualifier filters out weaker setups and typically precedes stronger reversals.
Indicators Used
Swing High/Low
Rules
📈 Perfected Buy Setup (Long)
- Standard TD Buy Setup: 9 consecutive closes < close 4 bars earlier
- Perfection qualifier: bar 8 or 9's low must be ≤ low of bars 6 AND 7
- If not perfected, wait for subsequent bar that makes lower low than bars 6-7
- Enter long on bullish reversal candle after perfection confirmed
- Stop: below the perfected setup low
- Target: 2.5R minimum, or prior swing high
Perfection
Required
9 count
Setup Base
💡 Pro Tip
Perfection is what separates average TD signals from exceptional ones. An unperfected 9 fails ~50% of the time in strong trends; a perfected 9 has substantially better historical performance. If your 9 isn't perfected, wait. It usually perfects within 3 more bars.