1 to 13 Countdown Phase
The Countdown phase begins after the Setup is complete and is marked by red, non-consecutive numbers on the chart. Its purpose is to measure the exhaustion of buying or selling pressure, depending on the direction of the initial trend identified by the Setup. Countdown helps anticipate when a trend is becoming vulnerable to reversal.
The Countdown is calculated by comparing the close of the current bar to the high (in a sell countdown) or low (in a buy countdown) of two bars earlier. Each time this condition is met, a number is added to the count, indicating the trend’s progression toward exhaustion.
Once the Countdown reaches 13, it signals that the market is likely approaching a reversal point. The Risk Level defines the price zone where the reversal is expected to occur, while the 12-bar rule defines the time frame in which this reversal should happen.
Unlike the Setup, the Countdown does not require consecutive bars, allowing it to function effectively in both trending and range-bound markets.
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How likely is a turn around if a 13 countdown is recorded? Why does the 9-13-9 Sequence Matter?
Also known as the 12-bar rule, this principle states that a reversal should occur within 12 price bars following the completion of a Countdown 13. If no meaningful reversal takes place within this window, the 13 signal is considered less likely to be effective, and the current trend is expected to continue.
This is why we send alerts and highlight a 9-13-9 sequence where we have a setup phase a 13 countdown and another perfected 9.
Of course, this doesn’t mean the market won’t eventually turn—but it suggests that the immediate opportunity has passed. In such cases, it's often best to wait for the next qualified setup before acting.
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