Taylor Trading Technique

[WHY? 16]

These are the numbers I have for the day session only

 

2/5/2009 822.50 849.00 816.75 840.25

2/6/2009 844.00 869.25 842.25 868.25

 

I agree we gapped above the close but not the high of 849 therefore giving us a small decline from the high of 849 to low of 842.25 = 6.75

 

Isn't that the way we are suppose to calculate the decline.

 

Rich

 

Exactly what instrument are you looking at? And exactly what time did the high of 2-5 and the low of 2-6 occur?

[richbois 10]

Rich

 

Exactly what instrument are you looking at? And exactly what time did the high of 2-5 and the low of 2-6 occur?

 

S&P emini futures ES high on 2/5 at 2:35PM EST and low 2/6 at the open 9:30 AM EST time based on 5 minute bar chart

[elovemer 10]

....today is sell short day for me .... but did not get penetration.... looks lilke may not get it....

....monday.... was looking for penetration of friday's high with a high made first....

.... if low is made first today ... and high is made last ... then will look for a high made first on tuesday which is my next buy day....

... for a short....

...... if the high for today is already in .... then may have to wait for next opportunity....

[elovemer 10]

....if new low before the close... then high was made first today .... for the short signal on sell day

.... look for a low made first on tuesday for buy day

.... unless new down swing will begin here.... for multiple-days down

... by my count only....

.... the high achieved penetration of friday's high for today as sell short day

[elovemer 10]

.... got a low made first on my buy day .. tuesday .... for a reaction long

..... remains to be seen whether it will hold or not....

.... already have a 66.75 point up swing which is good size for up swing to end here

[elovemer 10]

...whether or not holding monday's short .... may have to wait for next buy day for a long entry ..... which would be friday by my count....

... as it is possible the current swing trend may be down ....

[ramora 10]

Thanks everyone for the great thread.

 

If today was a Buy day and the bottom fell out, does tomorrow become another buy day until the bottom holds?

 

Dogpile: thanks for the screen shot of your book. What is the 'Taylor readings' at the top of each day? +1 -1 + 2 -1

 

Thanks again,

[HAKUNA 10]

Today was a SS day as per Richbois Book, and it played out to perfection.

However if you had considered as a Buy Day, then equally Taylor's rules would have worked as explained in posts by WHY?

[richbois 10]

Today was a SS day according to my count and NQ is the best textbook TTT example. We reach the average 3 day rally which was at same level as yesterday's high and failed to go higher. Market reversed and reached the projected lows that offered some support and a bounce just to go lower found some support at the Buy day low and that finally gave through.

 

And yes Hakuna this would have also been a perfect day to short if it had been a Buy day since we would have needed a decline from the SS day high until a Buy day low is formed.

[elovemer 10]

.... wednesday was my middle day .... i was looking for a buy day low violation for a reaction long scalp.... but only got a double bottom.....

...thursday is my sell short day ....

 

...since we are already well off 873... i will look for a long on my next buy day which is friday.... on a low made first.....

...whether or not holding monday's short .... may have to wait for next buy day for a long entry ..... which would be friday by my count....

... as it is possible the current swing trend may be down ....

[HAKUNA 10]

WHY?

 

On page 72 in the "Pertinent Points" Chapter the following is stated:

 

"There seems to be about two swings a week, one Upward and one Downward. In the Bull movement, the one downward will be longer and is the swing that causes the failures to penetrate the Selling Objectives and the cause of Buying Day Low Violations."

 

Should'nt it be Bear movement instead of Bull movement?

[elovemer 10]

.... i hope no one minds my posting here.....

... if so ... please just ignore my posts.....

....anyway.... we may close the gap today... but by my count friday is buy day ... so i won't look for a long unless it is a low made first on friday ....

.... preferably a low below today Thursday's low....

 

... 2nd best would be to have to buy a higher low held on buy day ... friday....

... my count differs from others here....

[richbois 10]

Today was a Sell Day. Was it confusing enough. We gapped down at the open below the Buy day low. Markets reversed and got back above these lows. When YM finally got above the Buy day low all markets reversed down. Coincidently when ES reached a new DP low, News came out and markets rallied like there was no tomorrow. This had to happen today or tomorrow as we needed to get back above the Buy day low on SS day to give us a Positive 3 Day Rally.

[WHY? 16]

.... i hope no one minds my posting here.....

... if so ... please just ignore my posts.....

....anyway.... we may close the gap today... but by my count friday is buy day ... so i won't look for a long unless it is a low made first on friday ....

.... preferably a low below today Thursday's low....

 

... 2nd best would be to have to buy a higher low held on buy day ... friday....

... my count differs from others here....

 

You could also short a buy day high made first per Taylors rules. So, you have potentially a long opportunity and a short opportunity depending on which long opportunity works out for you..i.e. low made first or holding an HB in the afternoon on Friday 2/13/09

[HAKUNA 10]

WHY?

have a couple of questions:

 

1. firstly, On page 72 in the "Pertinent Points" Chapter the following is stated:

 

"There seems to be about two swings a week, one Upward and one Downward. In the Bull movement, the one downward will be longer and is the swing that causes the failures to penetrate the Selling Objectives and the cause of Buying Day Low Violations."

 

Should'nt it be Bear movement instead of Bull movement?

 

2. secondly, yesterday we had the classic BV and on a sell day a long can be initiated as you explained in previous posts, keeping the low of previous day as the target.

yesterday however, we also had another low late in the day, would a long trade at this time be in keeping with taylor? and in the light of this late price action, how would you see it unfolding today which would be a SHORT SALE DAY? for as per Taylor's rules we should be primarily looking to sell on early opening rallies after a higher bottom taking it past the Buy Day highs, ofcourse depending on what tape is showing at the time

Edited February 13, 2009 by HAKUNA

[WHY? 16]

WHY?

have a couple of questions:

 

1. firstly, On page 72 in the "Pertinent Points" Chapter the following is stated:

 

"There seems to be about two swings a week, one Upward and one Downward. In the Bull movement, the one downward will be longer and is the swing that causes the failures to penetrate the Selling Objectives and the cause of Buying Day Low Violations."

 

Should'nt it be Bear movement instead of Bull movement?

 

2. secondly, yesterday we had the classic BV and on a sell day a long can be initiated as you explained in previous posts, keeping the low of previous day as the target.

yesterday however, we also had another low late in the day, would a long trade at this time be in keeping with taylor? and in the light of this late price action, how would you see it unfolding today which would be a SHORT SALE DAY? for as per Taylor's rules we should be primarily looking to sell on early opening rallies after a higher bottom taking it past the Buy Day highs, ofcourse depending on what tape is showing at the time

 

In regards to your first question I will need to look that one up. There are some typos in Taylors book and that could be one. However, at the moment I am extremely busy well drilling but when I get a chance I will take a look at it.

 

The gap down on 2/12/09 in the S&P happened on a sell day (by the count you guys are following) so it was a BV. The Taylor play would have been to buy that BV once the tape indicated some support. Then sell out at or near the low of 2/11/09 thus giving one a gain of 10 to 14 points depending on exact entry and exit levels. The low that came later would not have been a low Taylor would have taken advantage of. All BV must be made soon after the open (i.e. early in the session). You don't even buy a BV if it is made in the afternoon. While 2/12/09 would have worked out just fine going long on the second low made later in the session the taylor rules would have prohibited going long. Why? Usually BV do not rally back this strong so one would get caught in a cross current if they went long and no such rally was forthcoming.

 

A word about HB. Higher bottoms are looked at mostly in terms of an HB on a buy day. That is, HB indicate a play but only on a buy day. If they are made on any other day they dont carry the same significance as they would on a buy day. So, an HB on a buy day is a higher bottom (higher low) held all day than the previous days low i.e. the sell days low.

 

Regarding price action for today 2/13 one would look at shorting it after penetration of yesterdays high (2/12's high). Again, no need to consider an HB here because today is an SS day and HB's don't mean much in terms of making a play today (for entry i.e). Of course the exact entry must be determined by intrady tape reading. The tactic would be to short and cover same day especially if the decline is fast.

[WHY? 16]

WHY?

have a couple of questions:

 

1. firstly, On page 72 in the "Pertinent Points" Chapter the following is stated:

 

"There seems to be about two swings a week, one Upward and one Downward. In the Bull movement, the one downward will be longer and is the swing that causes the failures to penetrate the Selling Objectives and the cause of Buying Day Low Violations."

 

Should'nt it be Bear movement instead of Bull movement?

 

2. secondly, yesterday we had the classic BV and on a sell day a long can be initiated as you explained in previous posts, keeping the low of previous day as the target.

yesterday however, we also had another low late in the day, would a long trade at this time be in keeping with taylor? and in the light of this late price action, how would you see it unfolding today which would be a SHORT SALE DAY? for as per Taylor's rules we should be primarily looking to sell on early opening rallies after a higher bottom taking it past the Buy Day highs, ofcourse depending on what tape is showing at the time

 

In regards to your first question I will need to look that one up. There are some typos in Taylors book and that could be one. However, at the moment I am extremely busy well drilling but when I get a chance I will take a look at it.

 

The gap down on 2/12/09 in the S&P happened on a sell day (by the count you guys are following) so it was a BV. The Taylor play would have been to buy that BV once the tape indicated some support. Then sell out at or near the low of 2/11/09 thus giving one a gain of 10 to 14 points depending on exact entry and exit levels. The low that came later would not have been a low Taylor would have taken advantage of. All BV must be made soon after the open (i.e. early in the session). You don't even buy a BV if it is made in the afternoon. While 2/12/09 would have worked out just fine going long on the second low made later in the session the taylor rules would have prohibited going long. Why? Usually BV do not rally back this strong so one would get caught in a cross current if they went long and no such rally was forthcoming.

 

A word about HB. Higher bottoms are looked at mostly in terms of an HB on a buy day. That is, HB indicate a play but only on a buy day. If they are made on any other day they dont carry the same significance as they would on a buy day. So, an HB on a buy day is a higher bottom (higher low) held all day than the previous days low i.e. the sell days low.

 

Regarding price action for today 2/13 one would look at shorting it after penetration of yesterdays high (2/12's high). Again, no need to consider an HB here because today is an SS day and HB's don't mean much in terms of making a play today (for entry i.e). Of course the exact entry must be determined by intrady tape reading. The tactic would be to short and cover same day especially if the decline is fast. However, one needs to wait for the regular (day session) to do the intraday tape reading to confirm any premarket penetrations and entry points.

[elovemer 10]

....friday was my buy day ..... sort of ruined by thursday's action

.... but still had a high made first for a reaction short....

 

You could also short a buy day high made first per Taylors rules.

[WHY? 16]

"When a reaction takes place after a penetration of the Selling Day High and the movement is in ‘no hurry’ and the stock just trades down, we stay short anticipating our covering point, next day, on the Buying Day. We can cover the short sale when we buy our ‘long’ stock or perhaps a little before—to trade in this way gives you a little more time to concentrate on your Buying Day Objective—this point for both covering your short and your purchase will be—at a little above or below the low of previous day—the Low of Short Sale Day." The Taylor Trading Technique PDF version p 39

 

This was the action of today 2/13/09 in the S&P. The short was the trade to make. Exit was discretionary. Same day or since decline was slow one could hold and exit next session. Again, another taylor play that could have easily rendered 8 to 10 points. It opened trade thru the previous days high then the sell off began. One would have covered the short by noon or could even wait and cover next trading session since decline wasn't fast but took all day.

[WHY? 16]

"When a reaction takes place after a penetration of the Selling Day High and the movement is in ‘no hurry’ and the stock just trades down, we stay short anticipating our covering point, next day, on the Buying Day. We can cover the short sale when we buy our ‘long’ stock or perhaps a little before—to trade in this way gives you a little more time to concentrate on your Buying Day Objective—this point for both covering your short and your purchase will be—at a little above or below the low of previous day—the Low of Short Sale Day." The Taylor Trading Technique PDF version p 39

 

This was the action of today 2/13/09 in the S&P. The short was the trade to make. Exit was discretionary. Same day or since decline was slow one could hold and exit next session. Again, another taylor play that could have easily rendered 8 to 10 points. It opened trade thru the previous days high then the sell off began. One would have covered the short by noon or could even wait and cover next trading session since decline wasn't fast but took all day.

[WHY? 16]

how do you delete a post here? sometimes my post gets listed twice but i came seem to find a delete function on the forum?????

[HAKUNA 10]

WHY?

 

yes your posts are coming in as duplicates, perhaps you can PM Soultrader (James) , he should be able to tell you how to delete them.

 

BTW did you get a chance to look at p.72 of Taylors book regarding my query

 

"On page 72 in the "Pertinent Points" Chapter the following is stated:

 

"There seems to be about two swings a week, one Upward and one Downward. In the Bull movement, the one downward will be longer and is the swing that causes the failures to penetrate the Selling Objectives and the cause of Buying Day Low Violations."

 

Should'nt it be Bear movement instead of Bull movement?

[HAKUNA 10]

WHY?/Richbois

 

On a BUY day, a short can be taken on HIGH made FIRST. and unlike a sale day, we do not have to wait for a sell objective.

 

This is especially pertinent if a HIGH was made LAST on SS day, however what if a LOW was made LAST on SS day.?

[richbois 10]

WHY?/Richbois

 

On a BUY day, a short can be taken on HIGH made FIRST. and unlike a sale day, we do not have to wait for a sell objective.

 

This is especially pertinent if a HIGH was made LAST on SS day, however what if a LOW was made LAST on SS day.?

 

When a Low was made last on SS day we could expect a Buy under or a Violation of the SS day low. Taylor uses the term Buy Under for Buy day Violation. I just find it additional confusion so I call them all Violations no matter which day it is.

 

In today's case That was to be expected since we had not achieved the full average decline on the SS day.

[elovemer 10]

....ever since feb 9..... swing down

... keeping my same count.... as BMSB.... my next buy day is wednesday....

... i am not sure if i should shift my count or not..... when the swing trend changes to down from an up swing trend

 

....just by looking at it.... it appears to shift one day later..... but i will stick to my same count.... with today tuesday as sell day and tomorrow wednesday as buy day ....

...whether or not holding monday's short .... may have to wait for next buy day for a long entry ..... which would be friday by my count....

... as it is possible the current swing trend may be down ....

Edited February 17, 2009 by elovemer