Taylor Trading Technique

[elovemer 10]

monday short sell day

 

may be good for a scalp

[elovemer 10]

keep in mind that recently ... on short sell day ... market has taken off as though it were a buy day.

 

something to consider if you get long on a scalp... and previous highs are broken the same day.

 

 

 

 

monday short sell day

may be good for a scalp

[elovemer 10]

today tuesday ... is buy day

 

no fill at 22.25

[elovemer 10]

buy day .... weak close

 

could see buy day low violation tomorrow

 

that has been the pattern.... (down day ... then gap down the following day)

[elovemer 10]

thursday is short sell day

[elovemer 10]

watch out for a drop on buy day .... friday

[elovemer 10]

pretty weak drop for a buy day

 

unless there is more to come on tuesday

...................

 

 

 

 

 

watch out for a drop on buy day .... friday

[Corey 10]

pretty weak drop for a buy day

 

unless there is more to come on tuesday

...................

 

more of buy or more of sell?

[elovemer 10]

hey corey,

 

your guess is as good as mine.

 

i was expecting more of a down move. but did you see how they waited til the last second to run it up ?

a high close... suggests more upside.

 

but without at least a 10 point pullback, i consider it an extended cycle.

 

 

 

 

more of buy or more of sell?

[elovemer 10]

tuesday is short sell day

 

 

hey corey,

your guess is as good as mine.

i was expecting more of a down move. but did you see how they waited til the last second to run it up ?

a high close... suggests more upside.

but without at least a 10 point pullback, i consider it an extended cycle.

[elovemer 10]

remember the rules for buy day .... is if the market gives it to you the same day ... you close out the same day

[elovemer 10]

TAYLOR says no holidays....

 

i interpret this to mean that any day futures are traded.... is counted.

even if cash does not trade.

 

if futures don't trade... then i don't count that day.

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next buy day is wedn

[elovemer 10]

got some more.

 

a scalp is allowed on short sell day

 

 

pretty weak drop for a buy day

 

unless there is more to come on tuesday

...................

[elovemer 10]

got to wait for buy day .... or be sorry

 

got some more.

a scalp is allowed on short sell day

[elovemer 10]

market could gap up tomorrow...

like it did after the egypt pullback day

 

but according to the rules... must wait for buy day

 

on buy day .... want to see a low made first ... to test the low of short sell day

-----------------------------

 

if it drops again.... then the target of the buy day long would be the low of short sell day

 

if it holds.... then the target is the previous high

[elovemer 10]

wednesday... buy day

so far... high made first

 

if bulls can take out same day high.... then it becomes a low made first day... although low put in late in the day

 

if it closes nearer to the low of the day .... then look for a possible buy day low violation on sell day thursday

 

looks like it will be a slight..... close below ...20 sma daily... on the part of the bears.

....if the day ends that way.... bulls could rip on thursday.. back above 20sma and on to new highs.

 

bears need two STRONG consecutive daily closes below daily 20sma to change the trend at all.

[elovemer 10]

possible

short at 14-15 during globex

 

for a gap fill below and then a switch to long

[elovemer 10]

on sell day

 

buy day low violation

-----------------------------------------

 

21 hours down .... could be minimum 13 hours up... coming later..... probably much more

 

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friday short sell day.... could be a scalp

monday next buy day

[elovemer 10]

buy day low... violation on sell day

 

was the entry for this swing

----------------------------

 

monday next buy day

[elovemer 10]

if you didn't enter on buy day ... wednesday

 

or on sell day .... thursday... on low violation

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... don't chase on short sell day ... thinking you will be left behind

 

... wait for the next buy day to enter on a pullback.... which is monday

[elovemer 10]

following taylor's rules.... would have given anyone one of the best possible entries into the trend on a penetration of buy day low.

[elovemer 10]

" The book is always kept in this order,

never change the continuity

and there are no lines left open for Sundays or Holidays.

The market is considered as a series of continuous sessions without a break. "

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some have interpreted this to mean..... weekends and holidays are counted as part of the cycle.

 

....i disagree with that. i interpret it to mean that weekends and holidays are NOT included as part of the cycle.

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this brings up an important point.

monday was a holiday for cash index. but futures were open for a partial session.

and during that partial session, future declined significantly.

 

so the question arises.... do you consider it as a holiday as per cash index... or do you consider it as an active session as per futures.

 

i would like to consider it as a holiday as per cash.... and therefore ... to NOT count it as part of the cycle.

that would mean that tuesday would be the next buy day.... rather than monday.

-------------------------------------------------

Taylor where are you ?

[elovemer 10]

" .... and there are no lines left open for Sundays or Holidays. "

-----------------------------------

 

Taylor traded stocks and grains.

according to his plates.... the grains plates show saturday as another trading session.

while his plates for stocks.... did not include saturdays.

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to me... this means that grains were being traded on saturdays while stocks were not.

therefore saturday is part of his cycle for grains.... while it is not part of his cycle for stocks.

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for today's purposes..... stocks... i.e. stock indices... are open only mon-frid.

 

therefore stock index futures should be considered the same way.... since there is no difference between a weekday gap ... and a weekend gap. gaps are just gaps.

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obviously ... i am interpreting Taylor's words to mean the following...

"left open".... means don't consider a day with no trading as part of the cycle.

if it was included.... it would be a "line left open"

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[elovemer 10]

if we do not consider monday as part of the cycle.....

due to the holiday....

--------------

then today monday is short sell day

and tuesday is buy day

 

...rather than today monday being buy day

------------------------

 

..due to price closing at the highs.... the chances of testing monday low on tuesday looks pretty slim

... so any entry for a tuesday buy day looks shot

[elovemer 10]

for buy day ... tuesday

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goal is to buy at or below prev day's low

------------

if you did... you got a 50% bounce

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next play is to buy on wednesday... a buy day low violation

...with a target of buy day low... tuesday low