Qualifying TD Lines™

By first qualifying a TD Line, the user reduces the risk that intra-day entry (going with the TD Line Breakout) will fail, and, at the same time, increases the chance of success should the user fade the disqualified trade (going against the TD Line Breakout). To be a Qualified TD Line, price must satisfy one of the following conditions:

1. The close of the bar prior to upside/downside penetration is down/up versus the close two bars ago, OR

2. The open of the breakout bar exceeds upside/downside the TD Line and also opens above/below the previous bar's close, OR

3. The difference between the previous bar's close and its true low/high added to/subtracted from the previous bar's close is less than/greater than the TD Line. A true high is that bar's high or the close of the previous bar, whichever is greater; a true low is that bar's low or the close of the previous bar, whichever is less.

To be a Disqualified TD Line (dashed line), NONE of the above conditions exist, and the reverse logic applies.

Please note that you can customize qualifiers using the Parameter menu.