efficiency

Gee Josh, thanks for the distinction!!!!!!!!!!! In fact there is NO close of a bar. Hinges upon the timeframe of selection and the platform used. I just realized WHY I haven't been "here" for months.

Good traders have a knave doing their laundry. The close is NOT meaningless. 24 hour dynamics aside, the close is a bookkeeping entry. HOWEVER, it is a price point that can be used to influence. To keep participants "in". Over the weekend for example. It is the ONE price the public "looks at". It is the price most less nimble institutions "look at".

I relayed the Phantom of the Pits "words" via my own interpretation.. Swing trade is a label. Call it a multi-day position. Riding profits and modest pyramiding until one deems the risk/reward becomes unattractive and responding by either getting smaller or booking the entire profit. It appears his threshold was 3 hours hence a lot of scratching. I neglected to mention he used point & figure charts. I personally give little credence to volume. However, when it's extraorinarily high, there are a lot of decisions being made and what I term the "all in" concept.

It was implied from the series of of Phantom of the Pits articles that he scratched a LOT of trades. RULE 1 : Remove positions before the market tells you to. Only hold those that prove correct. Yesterday's data (midpoint) is critical to knowing PROOF. Must be at least reduced if not produciing within 3 hours. There must be a profit at the END of the entry day's close. They must CONTINUE to prove. RULE 2 Have a larger positon when you are correct. Don't take profits when proven correct. You wait too long and too hard to abandon them. Markets go to extremes. Press your advantage. Add once trending in a 3-2-1 unit ratio. RULE 3 Remove entire position with an early indication of topping. BIG money is on the surprise side and big losers are on the popular/expected side. Removing postions: YOUR exit is a better exit than the market proving you wrong. If traders aren't aware of what the market can do to them, they will head in that direction. Huge volume is a prelude to correction possibilities. Extreme volume is both high and low.

It's not a theory., it's my interpretation of Taylor's book after reading it over and over,. taking notes, and re-wording it so it's coherent. George Angell did the same thing concerning Taylor's aniclllary 3 day (B/S/SS) cycle by re-synchronizing the sequence with every 10 day low. I don't use that 3 day cycle. Just that matrix I provided coupled with a little paitience. As such, it requires screen time.

D or DCL means decline from the high of day 1 to the low of day 2 R or RLY means rally from the low of day 1 to the high of day 2. In conjunction it could be viewed as an "X" or cross. You virtually cannot have a large rally day without a small DCL.

The entire method is anticipatory based upon what generally takes place, but don't anticipate beyond your signals. Prices will appear contrary most of the time to the news. Manipulation Large operators start by buying all the stock above the market (establishing the trend as UP). Being active and up attracts the public. Outside demand is filed by the operator. Ideally, such demand is more than the amount he was "forced" to accumulate. At this point, he sells short. The stock ceases to advance. Experienced traders notice and start taking their profits. Weight of selling starts the stock down. The operator covers for both for profit and stabilization. Then the process is started all over again. In essence, he buys on the way down and sells on the way up, but always working higher. He pushes toward objectives but there are false moves (such as when a rally is not a rally but a trap to lure buyers). The rise and fall of prices is the same for everyone. BOOK TRADING More or less records the rhythm and consider 3 days as a cycle. Playing for quick small, sure profits. The objective point each day is ideally made first. These are the surest and quickest profits. We are only concerned with the next OBJECTIVE (and don't care whether the price goes straight because the "real" trend and a thousand transactiosns are between objective points). The best indication of an objective is the prior high or low and is where we expect concentrated buying or selling (support or resistance). Many times the open is the objective. No need to watch other than highs/lows of previous days for penetrations (or failures)IF objectives are made first. Expect penetrations of highs in uptrends and expect penetrations of lows in downtrends These define the real trend.. Moves start from either met objectives OR failures (which are indicative of a changing trend). Failures are caused by inside selling by those who think the price is high enough.. We get a "forecast" of this by flat or weak closes. Extreme highs are made relatively fast. Overall market crosscurrents only confuse and do not change the ultimate direction This reinforces knowing (marking) WHICH objective was made first each day. This "real trend" can only be seen on an intra-day chart. When the signals are made first, there is no delay. Mixed sessions extend the cycle and must be watched.. In downtrends expect TWO "D" sessions and a BV before any rally starts Flat or weak closes are usually in a downtrend. A weak close is a failure of the 'R" column, a strong close is the failure of a "D" column. In uptrends, corrections should be one session and lows generally made first There are generally two swings per week, one uptrend and one downtrend. To remain an uptrend, prior highs must be penetrated. We accept profits from a one day rally from the Buying Day low to the Selling Day high (and allow one more day to exhaust the cycle). Never be too anxious and use market orders. The book trader takes losses,but takes them when they are small, knows why and plays for better position. Protecting capital is fundamental to speculation. Buying Day: Should open AT or retreat TO the prior low. Observe the number of points down from the prior day's high. Making the low first, we look for support buying (retest) and expect a rally to follow. Between the buying day low and the selling day high there will be thousands of transactions. We buy at or a little above the previous day low. Buying a higher bottom (than the prior day) usually results in a profit.. This is where rallies start and reflects support resulting from a rally before the close on a short sale day.. It reduces the "D" unit and forecasts a larger "R" unit two days in advance. If the close is near the high or penetrates through, sell out the same day. A buying day purchase must show a profit from the low to the close. Buying TOO SOON means you need a little better timing. Buying on a low and then seeing it go lower does NOT prove you wrong unless the price closes flat. A flat or weak close suggests the operator is in no hurry to cover (and suggests the confusing Buying day Low Violation on the sell day). Sell out. You are wrong. A trader takes losses. He does not hold on and hope. He plays for better position. Selling Day This can be a zig zag day (intra-day reverse). The amount of rally from the buy day low to the close determines the selling objective. Weak or strong close? With an up close on the buy day, expect and up open and eventually a penetration of the high. Sell a wide gap or hold and wait for the prior high's penetration. If the open is flat or stalled, sell immediately (ducking the real sell off). Don't hold past a signal because the trend looks "good". Short Selling Day The day most likely to fool the public. The high should be made first (implies a gap up open) Ideally, the close should be near the low. We watch prices trying to anticipate the coming point to buy tommorow, We get this indication by the way prices close. A flat close means a lower open (causing the low to be made first) and buying early in the session. One or two leading stocks may be ramped up to flavor the overall market. Do not buy stock. Stay out.. A fast decline is indicative of a short sale day and leads to a higher bottom. A fast rise is to get the price higher without public participation. Decline Column Points out the number of buying opportunities in any one week.A normal decline halts around the prior day's low. A decline ZERO is always a higher bottom We can judge from past declines just what kind of decline is taking place now. A small decline unit is followed by a large rally unit when the stock is in an uptrend. A big decline takes time to consolidate around the low point (therefore the rally units are small after a large "D"). Don't expect a big R after a big D. The Big "W" is a sharp decline, fast rally, then a slower decline that fails. When the DCL is small the RLY is usually LARGE (it's also a higher bottom). Rally Column Shows the number of selling opportunities and how much of the decline has been recovered. Buy High Column The BH zero shows the termination of the three day swing. Penetration is a good place for a quick short sale if the high is made first. Buy Under Column Catching a temporary low before a rally.The BU zero points out the higher buying day bottoms (and hence higher prices). Flat close then a gap down open. Nothing in this columnis a strong and safe opportunity IF the low is made first. BU leads to BH failure. Buying Day Low Violation These occur 35% of the time. Results from buying too soon. and probably be the third session of decline.This occurs on the Sell day and reflects a flat closing on a buy day.. A rally from here is engineered via short covering. Buying this BV if the low is made first, is buying against short interest.You would not be buying at the top of a three day rise, but a rally caused by short covering is weak, so don't carry it too far. A BV with the low made first does NOT go to the normal selling objective. Always sell on a rally that makes up the violation. Buy BV's on gap downs but sell before the close. In the context of being long only, the intent is to buy near the low of Day 1 and sell near the high of day 2. Day 3, was considered the short day. A buy day is LMF, a short day is HMF, and the sell day can be EITHER ( a zig zag day) Putting these actions in a MATRIX: BH HMF..............................................Short BH LMF..............................................Hold ALL day BU HMF...............................................AVOID BU LMF............................................... BUY Obviously "they" don't ring a bell telling you if today is LMF or HMF, that's where trading intution, and YOUR skill (not software) play their role.

Hmmm. no posts since March. The "count" or 3 day B/S/SS cycle would be nice and neat in a perfect world. The world's not perfect. The entire method is anticipatory based upon what generally takes place, but don't anticipate beyond your signals. Prices will appear contrary most of the time to the news. Manipulation Large operators start by buying all the stock above the market (establishing the trend as UP). Being active and up attracts the public. Outside demand is filed by the operator. Ideally, such demand is more than the amount he was "forced" to accumulate. At this point, he sells short. The stock ceases to advance. Experienced traders notice and start taking their profits. Weight of selling starts the stock down. The operator covers for both for profit and stabilization. Then the process is started all over again. In essence, he buys on the way down and sells on the way up, but always working higher. He pushes toward objectives but there are false moves (such as when a rally is not a rally but a trap to lure buyers). The rise and fall of prices is the same for everyone. BOOK TRADING More or less records the rhythm and consider 3 days as a cycle. Playing for quick small, sure profits. The objective point each day is ideally made first. These are the surest and quickest profits. We are only concerned with the next OBJECTIVE (and don't care whether the price goes straight because the "real" trend and a thousand transactiosns are between objective points). The best indication of an objective is the prior high or low and is where we expect concentrated buying or selling (support or resistance). Many times the open is the objective. No need to watch other than highs/lows of previous days for penetrations (or failures)IF objectives are made first. Expect penetrations of highs in uptrends and expect penetrations of lows in downtrends These define the real trend.. Moves start from either met objectives OR failures (which are indicative of a changing trend). Failures are caused by inside selling by those who think the price is high enough.. We get a "forecast" of this by flat or weak closes. Extreme highs are made relatively fast. Overall market crosscurrents only confuse and do not change the ultimate direction This reinforces knowing (marking) WHICH objective was made first each day. This "real trend" can only be seen on an intra-day chart. When the signals are made first, there is no delay. Mixed sessions extend the cycle and must be watched.. In downtrends expect TWO "D" sessions and a BV before any rally starts Flat or weak closes are usually in a downtrend. A weak close is a failure of the 'R" column, a strong close is the failure of a "D" column. In uptrends, corrections should be one session and lows generally made first There are generally two swings per week, one uptrend and one downtrend. To remain an uptrend, prior highs must be penetrated. We accept profits from a one day rally from the Buying Day low to the Selling Day high (and allow one more day to exhaust the cycle). Never be too anxious and use market orders. The book trader takes losses,but takes them when they are small, knows why and plays for better position. Protecting capital is fundamental to speculation. Buying Day: Should open AT or retreat TO the prior low. Observe the number of points down from the prior day's high. Making the low first, we look for support buying (retest) and expect a rally to follow. Between the buying day low and the selling day high there will be thousands of transactions. We buy at or a little above the previous day low. Buying a higher bottom (than the prior day) usually results in a profit.. This is where rallies start and reflects support resulting from a rally before the close on a short sale day.. It reduces the "D" unit and forecasts a larger "R" unit two days in advance. If the close is near the high or penetrates through, sell out the same day. A buying day purchase must show a profit from the low to the close. Buying TOO SOON means you need a little better timing. Buying on a low and then seeing it go lower does NOT prove you wrong unless the price closes flat. A flat or weak close suggests the operator is in no hurry to cover (and suggests the confusing Buying day Low Violation on the sell day). Sell out. You are wrong. A trader takes losses. He does not hold on and hope. He plays for better position. Selling Day This can be a zig zag day (intra-day reverse). The amount of rally from the buy day low to the close determines the selling objective. Weak or strong close? With an up close on the buy day, expect and up open and eventually a penetration of the high. Sell a wide gap or hold and wait for the prior high's penetration. If the open is flat or stalled, sell immediately (ducking the real sell off). Don't hold past a signal because the trend looks "good". Short Selling Day The day most likely to fool the public. The high should be made first (implies a gap up open) Ideally, the close should be near the low. We watch prices trying to anticipate the coming point to buy tommorow, We get this indication by the way prices close. A flat close means a lower open (causing the low to be made first) and buying early in the session. One or two leading stocks may be ramped up to flavor the overall market. Do not buy stock. Stay out.. A fast decline is indicative of a short sale day and leads to a higher bottom. A fast rise is to get the price higher without public participation. Decline Column Points out the number of buying opportunities in any one week.A normal decline halts around the prior day's low. A decline ZERO is always a higher bottom We can judge from past declines just what kind of decline is taking place now. A small decline unit is followed by a large rally unit when the stock is in an uptrend. A big decline takes time to consolidate around the low point (therefore the rally units are small after a large "D"). Don't expect a big R after a big D. The Big "W" is a sharp decline, fast rally, then a slower decline that fails. When the DCL is small the RLY is usually LARGE (it's also a higher bottom). Rally Column Shows the number of selling opportunities and how much of the decline has been recovered. Buy High Column The BH zero shows the termination of the three day swing. Penetration is a good place for a quick short sale if the high is made first. Buy Under Column Catching a temporary low before a rally.The BU zero points out the higher buying day bottoms (and hence higher prices). Flat close then a gap down open. Nothing in this columnis a strong and safe opportunity IF the low is made first. BU leads to BH failure. Buying Day Low Violation These occur 35% of the time. Results from buying too soon. and probably be the third session of decline.This occurs on the Sell day and reflects a flat closing on a buy day.. A rally from here is engineered via short covering. Buying this BV if the low is made first, is buying against short interest.You would not be buying at the top of a three day rise, but a rally caused by short covering is weak, so don't carry it too far. A BV with the low made first does NOT go to the normal selling objective. Always sell on a rally that makes up the violation. Buy BV's on gap downs but sell before the close. In the context of being long only, the intent is to buy near the low of Day 1 and sell near the high of day 2. Day 3, was considered the short day. A buy day is LMF, a short day is HMF, and the sell day can be EITHER ( a zig zag day) Putting these actions in a MATRIX: BH HMF..............................................Short BH LMF..............................................Hold ALL day BU HMF...............................................AVOID BU LMF............................................... BUY Obviously "they" don't ring a bell telling you if today is LMF or HMF, that's where trading intution, and YOUR skill (not software) play their role.

Ending Fund Price - Beginning Fund Price __________________________________ Ending Index Price - Beginning Index Price The higher the ratio the higher the RS.