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Hi, I have to strongly disagree with Laguna' s continued ranting about Reza's room. I have been a happy member for over two years. Yes, he does sometimes have strong words to say about our politicians. However, he was also not shy about calling out Bush and his policies. It sounds like Laguna is biased toward Obama and is unable to objectively evaluate Reza's room. As for only trading one contract in the room. First of all, this is false. He often trades more than one and scales in and out as targets are met. Second, even if it were true, who cares as long as he demonstrates consistent profitability? You will not find another room where the moderator cares as much about actually educating the clients as much as Reza does. Try for yourself, do not let one biased opinion keep you from discovering one of the hidden gems.

Nothing new to add at the moment. Keeping track of the cycle this week has kept me on the right side of the market without falling into any traps. I do appreciate your posts this week. There have been several gems

I will explain my reasoning here, just so folks can correct my errors... My thoughts were that you can choose the lowest price of a ten day sample, and call that a buy day. Doing this on ES gives us Monday 10/22 as the buy day (lowest 10 day price). This makes sense to me as the markets were engineered lower Monday at the start, and we saw a nice two day rally the rest of Monday + Tuesday from these lows. With this cycle and counting backward, Friday 10/19 would be a short sell day, Thursday 10/18 a sell day, Wednesday 10/17 a buy day. The price behavior these days is consistent with this interpretation of the cycle. Markets started Friday at their highs and dropped all day. Counting forward, the cycle makes sense as well. If we take into account after market action a short sell at end of day Tuesday 10/23 would be profitable as of now. At the same time (Why's) reasoning makes a lot of sense as well. I had originally had marked 10/19 Friday as a buy day before the price action. After the drop, can I justify pushing the buy day forward a day to Monday, or will this break too many rules? I need to dig deeper into the Taylor book and hopefully I can contribute some better insight. Just having a hard time grasping why Friday would make a more logical buy day than this past Monday.

I agree with Dogpile that the cycle indicates a "short sell" day tomorrow, in that we had two low to high days in a row. Monday displayed classic "buy day" action in that we tested low and rallied. Tuesday would have been a good day to sell. But I can also see how Why? can state that tomorrow might be a buy day based on his analysis. These are the kinds of uncertainties that have been giving me trouble. I don't have my Taylor book in front of me. Assume tomorrow is as Dogpile suggests, a "short sell" day. The best scenario would be shorting into a gap up. Would Taylor advise stepping aside if the market gaps down? Or perhaps wait for the gap to close and possibly short then? Thanks to all for your time. Glad we have a few folks interested in learning.

"But, we have to realize he modified Taylor so you could go long or short on any of the days. Could that be a contributing factor to the "hit and miss"? Or, perhaps you are not combining live tape reading with Taylor? Are you doing this as EOD or trying to capture slices of intraday cross currents?" --> When I say hit or miss, I mean that a day I expected to see be a sell short day actually resulted in a buy day, or a buy day dropped the entire day. So far I haven't done intraday changes of day or tape reading. This has just been a research exercise for me so far. So if anyone wants to test their Taylor skills a good exercise may be to map out all of the September days as a buy, sell, or sell short. Perhaps much of the uncertainty about the Fed meeting that month made the cycle harder to predict in advance.

I would also like to thank Why and Dogpile for their contributions and hope that this thread continues to grow. I have been keeping a spreadsheet for a couple of months now using the methods outlined in George Angell's "Winning in the Futures Markets". So far it's been somewhat hit or miss. He talks about "rephasing the cycle" when the price momentum indicator changes direction, and pushing the cycle forward a day when the unexpected happens. Unfortunately in September there were many days when the cycle got of out sync. He also advises stepping aside for a few days when this happens until the cycle resumes. I plan to review the concepts in this thread again and also study the Raschke material. I tried to review the Taylor book, but I soon got a migraine so I'll need to revisit that at a later date.