Taylor Trading Technique Dec 2007

[Dogpile 10]

This being the 3rd month of this thread, thought I would try to generate some systematic rules. I will try to 'score' the quality of the Taylor set-up.

 

Taylor is really just a method to try to seek good 'location' for a trade. This is similar to Market Profile in a lot of respects. Pg 88 of 'Markets In Profile' (Jim Daltons excellent book) could just as easily be applied to George Taylors method:

 

"Remember the subtlety in what we do: we don't forecast, we assess the risk of our positions. We seek to... establish positions that provide favorable risk/reward characteristics."

 

I have used 4 primary rules to try to do something Taylor-like.

 

1. What is the 'high to low'/'low to high' pattern of the preceeding 2-4 days

2. Is there a HV or LV (Violoation of previous day high/violation of previous day low)

3. What is the 'location' of price relative to the 15-min 20-period Exponential Moving Average

4. What are key support resistance prices from previous days (highs/lows and PVP's)

 

Finally, there is one thing that is kind of subjective that you have to watch:

 

Is the market trending strongly off opening price? (called 'Open-Drive' in Market Profile).

 

Todays Taylor Set-Up:

1. There were 2 days that traded 'High to Low'

2. We had a 'Low Violation'

3. We were trading FAR below the 15-min 20-ema

4. We had key support in 1461 area and price traded into 1462.50 this morning.

 

*We did not have 'open-drive' -- strong trending action off opening price...

 

Thus, we had an excellent 'Taylor BUY Set-Up.' This can also be interpreted as:

'The risk of being short was high due to bad location'

'The reward vs risk for being long was good'

 

[monad 10]

Your blend of Taylor method with other technical analysis tool is excellent, just what is required for today's market. Incidentally today as a "Buy Setup" is also consistent with the reading on the Dow cash market by Tom Williams at the VSA thread, very interesting indeed. It is a shame others who are familiar with TT do not provide their insights and comments here.

 

Anyway you are doing a great job:thumbs up:

[Dogpile 10]

one quick correction. my chart above shows Tuesday being a 'low to high' day as designated by the green bar at the end of the day in the indicator 'H or L Made First'. I have watched this situation where the 24-hour chart goes 'high to low' and the pit session chart trades 'low to high' --- which is it?

 

In this situation, I default to the 24-hour chart. This didn't matter at the time of the entry yesterday as either chart showed the same thing in terms of the set-up -- the correction is really for the set-up for today.

 

Here is the EasyLanguage Code I am using for this indicator at present:

 

  Quote

vars: cc(0), firstbar(0), length(0);

 

if date>date[1] then begin

firstbar=currentbar;

end;

 

length=(currentbar-firstbar)+1;

 

if highestbar(h,length)>lowestbar(l,length) then cc=-3;

if highestbar(h,length)<lowestbar(l,length) then cc=3;

 

if time>1300 and time <1330 then

plot1(cc,"cc");

 

if cc>0 then

setplotcolor(1,green)

else

setplotcolor(1,red);

 

plot2(0,"0");

[monad 10]

DogPile,

4th, 5th and 6th have now been Low to High days,

Today is more like a Sell day as per the way I read your charts. Now if TT is followed Monday could turn out to be SS day, Would you be looking for a high violation to seek a good location for a trade.

[mikiscalp 10]

  Dogpile said:

This being the 3rd month of this thread, thought I would try to generate some systematic rules. I will try to 'score' the quality of the Taylor set-up.

 

Taylor is really just a method to try to seek good 'location' for a trade. This is similar to Market Profile in a lot of respects. Pg 88 of 'Markets In Profile' (Jim Daltons excellent book) could just as easily be applied to George Taylors method:

 

"Remember the subtlety in what we do: we don't forecast, we assess the risk of our positions. We seek to... establish positions that provide favorable risk/reward characteristics."

 

I have used 4 primary rules to try to do something Taylor-like.

 

1. What is the 'high to low'/'low to high' pattern of the preceeding 2-4 days

2. Is there a HV or LV (Violoation of previous day high/violation of previous day low)

3. What is the 'location' of price relative to the 15-min 20-period Exponential Moving Average

4. What are key support resistance prices from previous days (highs/lows and PVP's)

 

Finally, there is one thing that is kind of subjective that you have to watch:

 

Is the market trending strongly off opening price? (called 'Open-Drive' in Market Profile).

 

Todays Taylor Set-Up:

1. There were 2 days that traded 'High to Low'

2. We had a 'Low Violation'

3. We were trading FAR below the 15-min 20-ema

4. We had key support in 1461 area and price traded into 1462.50 this morning.

 

*We did not have 'open-drive' -- strong trending action off opening price...

 

Thus, we had an excellent 'Taylor BUY Set-Up.' This can also be interpreted as:

'The risk of being short was high due to bad location'

'The reward vs risk for being long was good'

 

 

hi..exeuse me..where i can found or download this indicator for meta4 ? ,m is bad englisch i'm italina...thank you

[mikiscalp 10]

hi:) ...where can i found or download the indicator meta4 that are in your set up grafhic of taylor tecnique?...exeuse fro ma bad english i'm italina...thank you for help

[Sparrow 10]

It's for TradeStation, not MT4, bad luck.

[atuldoc 10]

AFL for amibroker plz

[legendkiller420 10]

Good job..Do you have afl code for amibroker?

[wildeazoscar 10]

@MrDogpile

 

Albeit you have a pretty systematic tool I find it to be grossly under performing on the following counts-----

 

1. Pro of system------ thinking of a return to the POC and EMA----- Con----- wrong choice of the EMA period-- with all the charts posted, the most logical EMA should be 29 period as it really depicts the value for the day consisting of 29 candles.

Ideally, a bias should be attached, making a H4 or L4 level breakout as precursor to changes and L3 and H3 should be taken as relevant anticipatory entry zones on subsequent buy and ss days ( remember----- as a swing trader you anticipate the market to hold and wash out the weak hands )

 

But I was really confounded at a brilliant thinker like you not even thinking of the incorporation of Multiple Time Frames to Taylor---- let me codify it

 

Follow Linda's pinball or ROC rules on 1st of every month and anticipate the month to be B,S or SS

 

Once the bias is established, check for H/L violation confirmed with a streak of 3+ contrary H-L or L-H moves

 

Once a Trade fires off, calculate the natural monthly target----- you can use either taylor targets or trade in direction of monthly pivots, taking first two days range as the opening range

 

Once you have the desired move setting in, anticipate your entry in weekly frame through the same process as written above

 

Once the weekly entry sets in manage it through the daily, again in sync with the above method

 

A final twist---- the best trade would turn up, if the time frames do not collide----- i.e., on a back projection, the weekly decision and the monthly one agrees one month earlier, the daily and monthly and daily and weekly, mutatis mutandis

 

Loved the 3 videos you posted out at youtube and am really waiting for the ones that seem to have been removed (you spoke of one about the pivot and taylor combined, which never turned up, also the one with POC and EMA seems missing)

 

Tiddles

Wildeazoscar

[johnnydaymon 11]

Dogpile how to get the H or L violation ? When you change the cc to 1.50 and -1.50 there's no change. If anything it gives a signal in a chop period. Does it only work on @ES.D