Taylor Trading Technique Dec 2007

[Dogpile]

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]

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

[Dogpile]

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)>lowe stbar(l,length) then cc=-3; if highestbar(h,length)<lowe stbar(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]

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]

	Quote:	Dogpile
	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]

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]

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