TD Perfected
Setup

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.

ReversalDaily2.5:1 R:RModerateExhausted
Perfection
Required
9 count
Setup Base
Deploy This Strategy See Rules

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the TD Perfected Setup setup.

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 tends to hold up considerably better. If your 9 isn't perfected, wait. It usually perfects within 3 more bars.

Common questions

What is the TD Perfected Setup strategy?

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.

What's the pro tip for trading TD Perfected Setup?

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 tends to hold up considerably better. If your 9 isn't perfected, wait. It usually perfects within 3 more bars.

What indicators does the TD Perfected Setup strategy use?

The TD Perfected Setup strategy uses the following indicators: Swing High/Low. These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for TD Perfected Setup?

The TD Perfected Setup strategy is best traded on the Daily timeframe. This can be adjusted based on your trading style and market conditions.

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