elovemer

.... decline.... from short day high to buy day low .... rally .... from buy day low to buy day high .... last two examples included 2nd day as part of rally also.... as buy day low occurred at end of session.... --------------------------------------------- .... by the way .... if you are playing today friday as a sell/short day ..... ..... then this is an example of one of Taylor's reaction plays..... ..... where the low is made first early in the session..... and you go long for a reaction up...... but you don't hold for a swing play.... .... if you are playing today as a sell/short day .....

..... by the way ..... 23.75 point decline 41.25 point buy day rally 25.5 point decline 31 point buy day rally 39.25 point decline 55.5 point rally include the day after... on mid day 36.5 point decline 43.5 point rally ....include day after ..... included day after on last two.... as low of buy day was at end of session....

....except for special circumstances which call for higher risk plays.... ..... Taylor only enters on a buy day or a short day ..... .... the middle day he only uses to close out positions.... unless it's one of those special plays which are higher risk.... .... i am just referring to the highest probability setups.... low/high made first and early..... .... that is the highest percentage play available.... ..... one thing which i think is interesting is when Taylor talks about when a play goes against him.... how he changes his target to a more conservative one.....for example a break-even target..... ..... the reason i think it is interesting is.... i wonder what kind of stops he used if at all.... ...... maybe WHY has some insight into this .... where Taylor may have placed his stops if he used them at all.....

.... sorry... chapter 5... ... where it starts, "when the high is made first on a buying day ...this causes the low.... " ....by the way ... on spy.... we have a very good trend line set up on top .... to gauge for a sell point tomorrow... which is my sell/short day .....

.... i am referring to page 30 ... not chapter 9 .... although that goes with it as well..... have a look at page 30 ... the thing about Taylor's book is that he has pieces of everything sprinkled all through the book ... not really separated very clearly..... which is why it can be confusing..... ... today is your sell day .... i call it "middle day" so as not to be confused with short sale day ..... can be a chop-fest.... :9( ..... i guess he chose to call it sell day... as a reference to selling out the longs held over from buy day ..... ..... "middle day" is a great day to not trade at all.... unless it is a big trend day..... which can happen if the low on buy day comes at the end of the session like it did last time...... check out page 30 which refers to a slightly different situation than what happened on last buy day ....

....look at page 30 for Taylor's specific rules to follow when a high is made first on a BUY DAY....

.... you could have gone long as per something other than Taylor's system.... .... that would have been a great trade ! ;0) ...sandwiched between the 50 and the 100 on the daily.... we are going to move....

....Taylor wants us to only take the best setups.... which means a low made first and early.... .... as per his system.... only the reaction short play would be allowed..... .... the low was made late in the session .... Taylor would not take that long.... but.... rather would wait for the next play ...... ...... which would be the next sell/short day ..... .... if you took the long... it would be based on some other system..... .... even so .... the session having ended.... you can see that based only on this session.... the reaction short would have amounted to a larger gain than the long entry ..... ..... for the long entry .... you would have had to time it perfectly .....whereas the reaction short had the usual predictable pivot time of around 10.30am..... which is where you would have wanted to see a low made first..... for a long entry ..... an up trend is indicated by low made first high made last.... so if today was your buy day .... Taylor would have kept you out... .... however if today was your sell/short day .... the high made first low made last fit your sell day much better.....

today .... wednesday.... ....looking for low made first... instead got a high made first and early.... .... so could be a reaction short..... ... the reaction short would be closed... not held.... unless you ... by some other means... know that the swing trend has switched to down....

.... if the high is made late in the session.... Taylor says let it go... stay out.... .... when you are looking for a high made first .... a reaction play would be .... if on that same sell/short day .... there is a low made first early in the session.... .... then he says you can go long for a reaction up ..... not a hold/swing play.... .... and vice versa for a buy day .... on a high made first.... a short on a reaction down... .... but reaction plays are not the main part of the plan.... they are more risky.... ...according to Taylor's method.... if you want to swing.... you have to be safe... and patient..... and only take the best setups .... the only scalping that occurs would be the reaction plays.... ------------------------------------------------ .... today tuesday was my sell/short day ..... .... instead of a high being made first and early .... the high was made late in the session.... ... Taylor has rules for this .... so no problem.... Perhaps you can expand on this ========== .... the basic rule is first and early..... otherwise stay out except for reaction plays.... What exactly is meant by reaction plays ==================== .... if it is not first and early.... then wait for the next play on a different day... yes that is where patience comes in

.... i am not sure about which posts you were referring to in regard to "hi/lo cycle theories" ..... .... if you can be more specific... i can try to comment on it..... .... sorry i didn't mean to ignore your request before... just didn't see it.... ...and yes i agree... Taylor seems to work better in terms of clarity for me as well.... in an uptrend.... ... in the previous down trend.... the only dependable thing was making a high first and a low last..... but the cycle was more erratic...

.... i had friday as a buy day .... .... instead of a low being made first and early..... the low was made last .... Taylor has rules for this..... so no problem..... .... today tuesday was my sell/short day ..... .... instead of a high being made first and early .... the high was made late in the session.... ... Taylor has rules for this .... so no problem.... .... Taylor has rules for just about everything.... so no problem... as long as his rules are followed...... .... the basic rule is first and early..... otherwise stay out except for reaction plays.... .... if it is not first and early.... then wait for the next play on a different day... .... it seems like no one actually reads Taylor's book (don't mean you Monad or anyone in particular) .... which is a mistake....

.... guess somebody bought on buy day after all....

.... suri.... you da man

....low is higher than last buy day low.... ... but high made first... low made last... bearish... ... must wait for next sell/short day .... tuesday....

.... if there is to be a low made first.... .... it could be later in the session....and a big rally at the close .... a low first ... early in session is better....

....at 8.23 am .... good setup here for a penetration of globex low ... for a buy point.... .... have to wait and see ... for a low made first

...... want to see friday low .... put in higher than last buy day low at 746.... .... by my count..... .... in order to continue the up trend..... ...EDIT.... got the high made first on thursday for the short play

... looking for a high made first on thursday .... for the short play ...

....nice job mitsu.... looks like you had a similar plan to mine.... ...... let's see how many cycles we get out of this up swing....

.... my next sell/short day is thursday.....

.....got the low made first.... .... now let's see if it holds or not.....

.... today tuesday .... buy day .... .... looking for a low made first... and early in the session ... for a buy point.... .... if this next cycle carries like the first one did.... then can look for signal that trend could change to down again or not..... ..... depending if this buy day low is higher than last buy day low or not.....

... high came first.... although late in the day.... .... low came last.... ...decline came fast and hard... so must cover without holding overnight..... ... for an uptrend... tuesday low ... needs to be higher than 710 es .... in order to maintain up trend.... for tuesday buy day low.... ..... possibility of holding short over night.... is suggested by the lateness of the high..... .... sometimes if the high comes late in the day ... it suggests a continuation of the downside correction.... .... 50% is at 718 es

.... today monday is my sell/short day .... ...i am looking for either a gap up .... or a high made first.... ... for a short play..... ... with tuesday as a buy day ..... .... the short may not be as important as the long will be .... since it seems to be an uptrend now.....