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Taylor Trading Technique

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....oops... i didn't see you had already posted that about the short... MONAD

 

If this is a Buy day and considering only day session, surely a gap up past yesterday's high calls for a Short according to Taylors Rules.

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I showed this in another thread which was critical today, imo. volume never supported the initial push below the previous days high (critical taylor level). btw, those are west coast times on the chart.

 

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.... in this case... where today thursday is my middle day ....

 

... i am not sure whether to make today a short day in the cycle.....

.... or to stick with friday as a short sale day.....

 

.... if i treat today is a short sale day .... thereby losing one day in the cycle....

..... that means i would have to treat tomorrow friday as a buy day....

..... low made first yesterday ... still needs to be taken out .....

.... if they can

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...until i see that the trend has changed to down ....

.... i will continue with thursday as middle day .....

.... and friday as short day .....

 

.... so will look for an attempt to penetrate thursday high....

.... may have to sell a lower high... failure to penetrate..... on friday

 

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

.... in this case... where today thursday is my middle day ....

... i am not sure whether to make today a short day in the cycle.....

.... or to stick with friday as a short sale day.....

.... if i treat today is a short sale day .... thereby losing one day in the cycle....

..... that means i would have to treat tomorrow friday as a buy day....

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....low made first 10.30 am friday.....

 

.... since high will be made last (looks like)..... Taylor says stay out....

 

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

...until i see that the trend has changed to down ....

.... i will continue with thursday as middle day .....

.... and friday as short day .....

 

.... so will look for an attempt to penetrate thursday high....

.... may have to sell a lower high... failure to penetrate..... on friday

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....low made first 10.30 am friday.....

 

.... since high will be made last (looks like)..... Taylor says stay out....

 

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

...until i see that the trend has changed to down ....

.... i will continue with thursday as middle day .....

.... and friday as short day .....

 

.... so will look for an attempt to penetrate thursday high....

.... may have to sell a lower high... failure to penetrate..... on friday

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..... trend don't look so good.....

..... with a double bottom on buy day .....

 

.... the next play is short day .... on wednesday ......

 

 

... IF THE TREND HAS ALREADY SWITCHED TO DOWN......

.... then i would change the cycle to S/M/B/S .... starting with that last short day .....

.... which would mean that tuesday is buy day .....and wednesday still short day

.... having said that .... i have not found the Taylor cycle to be as predictable when the trend is down as compared to when the trend is up .....

 

....no contributors ?

.... even if missed the sell for short day .....

..... and even if the trend has switched to down....

.... could be lining up for a nice buy day long entry....

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As WHY? and Richbois have explained, it is better to stick to the cycle depending on when the book was started and not to keep switching. Then the rules work fine, otherwise it just ends in confusion overall.

 

QUOTE FROM WHY? "just follow Taylors rules when employing the daily tactics. Be ruthless in this. Sure, following the rules will inevitably cause you to miss out on some moves but you will also save your hide when things go wrong and you lessen the chances of being caught with your pants down. It is all about having system that puts the odds in your favor and FOLLOWING that system. It takes a heart of steel and a disciplined mind"

 

and again as Eiger has posted on VSA thread it is better to use the word "Anticipation" rather than "Prediction"

Edited by monad

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..... i haven't switched yet....

.... but if the trend changed to down... i would switch as i explained....

... in a down trend i would not continue using B/M/S/B

..... i would use S/M/B/S

 

.... i could care less what WHY? and Richbois are doing.... they have their own cycles to worry about.... which differ from the cycle that i am using....

:0)

..... i think you are mistaken though.... i think what those traders explained is that it is better FOR THEM to do WHAT THEY DO..... not to dictate to any other trader what they should do....

..... any trader trying to trade someone else's system will always be lost.....

 

...again if the trend changes to down.... i will change to S/M/B/S .... or to whatever other cycle may better fit the situation.....

 

.... why don't you contribute your own individual perspective.... instead of quoting what some other traders like to do with their systems.... ???

.... you are just as important a trader as anyone else.... so why not contribute your own system... or perspective..... to keep this thread evolving...

 

PS. i am not sure if you were commenting about my post.... but if so... .that is my response.... even though no response was asked for..... hopefullly we can get more posters like FRANK to contribute new and different perspectives....

..... no system is THE system.....

 

As WHY? and Richbois have explained, it is better to stick to the cycle depending on when the book was started and not to keep switching. Then the rules work fine, otherwise it just ends in confusion overall."
Edited by elovemer

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1. It is not a question of WHY? or Richbois dictating their cycles, what they emphasized was as per Taylor , once a book is started, it does not benefit to keep tweaking the cycles. Richbois has I believe kept a book since start of 2008 and conducted statistical analysis on this matter ie. shifting the cycles and established that it did not materially bring about any increased value.

 

2. If you wish to superimpose your own variations, whatever jingles your bells, nobody is stopping that. Afterall G. Angell and L. Raschke have done the same, but that is not strictly Taylor's Methodology , is it?

 

As for bringing perspective, I stick with what I have learnt from WHY? and Richbois who both IMO have indepth insight into the Methodology and that in conjunction with my own study of Taylor's Method and Rules has taught me the need to adhere to the principles and has proved profitable for me.

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... as per Taylor's 3 day book method.....

... in simple terms

 

up trend.... day 1/2/3/1 buy/sell/short/buy

down trend... day 1/2/3/1 short/cover/buy/short

.... let me know if i misread Taylor's work ... MONAD ....

...yes ... strictly Taylor's methodology...

 

.... better yet... just contribute your own methods to the thread instead of focusing on other people's methods....

Edited by elovemer

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agree with elovemer,

 

in my opinion, you just can't get too caught up in the names of the days --- its the underlying concepts that matter. if you are shorting on a buy day and buying on a sell day, that is fine if its consistent with general daily rhythm of high penetrations and low violations (or lower high/higher low). does is really matter what you called the day if that is the case? no, it only matters that the taylor daily rhythm 'favors your play'...

 

today we made high of day in opening 30-minutes... call it buy day/high made first, call it a sell-short day or call it a cover day --- it doesn't matter what day I label it, its a sell-short structure off a morning high.

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.... monad.... get back to me once you have read Taylor's work....

 

.... not only does he advocate changing the cycle in the way that i described depending on whether the trend is up or down.... (3 day method)

..... but he also advocates changing the length of the cycle depending on the trader's desired time frame of trade.... (shorter-term 3 day versus longer swing)

.... this is very clearly stated in his work.... if you mean to suggest that blindly keeping the same unchanging 3 day cycle year in and year out ... is pure Taylor

.... then i would suggest that you are reading something other than what Taylor has written......

 

.... Taylor may have a confusing writing style.... but these things are very clearly stated....

..... luckily... we all have different styles and we don't all have to trade strictly according to what Taylor put forth....

 

MONAD

2. If you wish to superimpose your own variations,.

Edited by elovemer

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.... again... i am not convinced that the trend has indeed changed to down yet.....

...... but if it does.... i will be using S/M/B/S .... or maybe S/M/M/B/S .... depending on what WORKS BEST FOR ME .....

.... this is pure Taylor....

 

..... FRANK .... i think Taylor agrees with what you wrote....

.... it doesn't matter which day it is..... if the structure is there....

.... hence Taylor's "reactions plays" .....

 

.... for me only..... i have wednesday as a short day ....whether i switch the cycle to S/M/B/S or not....still have wednesday as a short day .....

........ IF THE TREND HAS ALREADY SWITCHED TO DOWN......

.... then i would change the cycle to S/M/B/S .... starting with that last short day .....

Edited by elovemer

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... i find Taylor's framework to be more "predictable" in an up trend than in a down trend.....

 

.... monad... have a go at actually reading what Taylor wrote....

.... the language used is not important..... but the concepts are.....

 

--------

and again as Eiger has posted on VSA thread it is better to use the word "Anticipation" rather than "Prediction"

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Frank,

 

... for your personally....

.... at what time did you know that a high had been made ?

.... and how did you come to make that determination ?

 

.... the reason i ask is that i think this is the main problem for traders using Taylor's ideas.....

.... due to any day holding the potential for a long or a short.... if reaction plays are included..... making the determination quickly ... as to whether a low or high has been made .....

.... seems to be the only obstacle to entering the trade.....

 

today we made high of day in opening 30-minutes... call it buy day/high made first, call it a sell-short day or call it a cover day --- it doesn't matter what day I label it, its a sell-short structure off a morning high.

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.... Frank....

.... in this post... you only meant.... "for that day" right ?

 

.... i mean... you meant the following right ?

....the cycle does not switch until a morning high FOR THAT DAY is taken out.... ????

 

... for example .... you don't mean ..... "until the PREVIOUS morning high made first" is taken out..... ????

 

thanks.....

 

This cycle does not mechanically 'switch' until a morning high is taken out.

 

Now, price tested the Tuesday low on Wednesday for 'low first' -- and it did so in the opening 2 hours -- then the high was taken out for 'low made first' --- this signals that the market is in an up-cycle until a 'morning low' is violated to the downside.

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It is really pointless being at loggerheads on this issue.

 

It is not about "other people's method", it is about this thread "Taylor Trading Technique" if somebody wishes to adhere to the 3 day cycle year in and year out, you cannot impose your variation on to that person just as you do not want the other person to dictate to you.

 

As I have stated like WHY? and Richbois in particular I believe has been doing so successfully, I like to follow the Book Method and is working fine for me, for in the final analysis, it is the tape reading skills which I have acquired over many year's study of Wykcoff/VSA/Pivots etc that determine the entry/exit and consistent profitability on intraday trading basis.

 

Hence lets just leave it that, shall we ;)

 

In leaving, a Quote from Taylor's book, Chapter 1, p.14 "The trader using the Book Method of trading has a choice, in that he has an Objective for each trading day or he can use the Three Day Method, that of buying and then selling every third day.

This Three Day Method is explained in a later Chapter."

 

You prefer the 3 Day Method, somebody like Dogpile prefer to employ Linda Raschke or G. Angell take on Taylor.

 

In short whatever jingles your bells, I have no problem whatsoever with that:cool:

Edited by monad

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.... the issue you brought up was whether or not changing the cycle according to whether the trend is up or down .... is or is not .... as per Taylor's method.....

..... according to the Taylor book.....

..... i pointed out to you that changing the cycle is.... as per his book......

 

.... and i further pointed out that if you had actually read the book....

.... you would not need me to point that out in the first place....

.... and you would not be making asinine remarks about what kind of language to use on this forum....

 

..... would love to see your system .... or anything productive... which is based on Taylor's book..... knowing that you have not actually read his book at all.....

 

.... as i stated already.... READ THE MATERIAL .... and then get back to the forum with something constructive....

 

It is really pointless being at loggerheads on this issue.

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