Taylor Trading Technique Nov 2007

[Dogpile]

S&P's did run nearly +20pts up off the 'higher bottom'... you can see how as soon as it fulfilled the 'low to high' move, it reversed. it was its own little 'intraday high violation' after a +20 pt move up.

The day ended up a NR7 (narrowest bar of last 7) and an 'inside day'... A narrow, inside day can be a 1-bar breakout pattern so need to think about Monday being a potentially dynamic day with 'range expansion'. a morning high/low violation is still a 'potential' fade but need to be careful as we could get a strong directional move out of the NR7/ID. Will have to monitor volume/breadth and range expansion off opening price.

It looks to me like we have had good buying low in the large trading range and that Fridays afternoon 'higher low' might have been a 'tell'... On the other hand, we are still stuck right in a price zone that has built up a ton of volume now near 1461.00. We have not seen any sustained 'initiative' selling below 1461.00 yet. The Thursday-Friday action does not suggest immediate 'downside continuation' to me... Thursdays down day was on weak volume and Friday made a 'higher low' so maybe next auction is up. We'll see.

[RAVIN]

Had a preliminary read of some of the chapter in Taylor's book , especially the one on Pertinent points, am ignoring the chapters 2-4.
You are right Dogpile, the head starts to get dizzy after a while, have go in the garden to cogitate and assimilate in small doses, however it looks like with some effort and persistance, one can get a handle on it.

Overall it is a matter of observing 3-4day swings and making note of their highs and lows and really noting the price action against those for intraday trading , I think the explanations on the central concepts outlined on this thread and the previous one help a great deal in the learning curve.
Keep it up

[RAVIN]

Interesting correlation with European Markets:

Recently the European markets have been leading the US markets, there was a time when it was the other way around, how long this lasts , who knows. Has also been commented upon by some lady traders like Linda Raschke , Nazila Jafari (Top Dax, S&P, Euro trader and a coach, shame she prefers to coach women primarily:rolleyes:, interviewed in www.traders-mag.com, Jan 2005)

Linda also in one of her interviews states "The Dax is more indicative of Dowtype stocks, while the EuroStoxx is more indicative of the S&Ps and is actually the more active liquid trading contract by about 3 times", she notes,
"What you'll find is, if you pull up a 15Min Eurostoxx chart and observe a strong uptrend, I could just by the S&P futures right then and have very high odds of a winning trade"

Lets see the Monday 19th Nov action via TT:

1. Wed 14th Nov ---"High to Low" ----- Sell day ??
2. Thur 15th Nov ---"High to Low" -------SS day
3. Fri 16th Nov ---"Low to High" , close near to open ----Buy day ???

4, Monday 19th, "Sell day anticipated --- Low to High"

On the dax market gaps down , so as per TT, the shorting opportunity would be after a rally, which occurs in the 1st hour and creates a lower high near the previous days High, ideal place to short, the prices then head south for a drop of over a 100 pts. Hence this would conform to TT and would be a Sell Day,

5. This weakness is mirrored right from the open on YM and ES. Now can this be considered not only as a sell day but also one where the Low of the Buy day has been violated, if so what is anticipated for Tuesday,

6. Following the ideal sequency of SS day, buy day, sell day, it should be a SS day or because of that violation of low of Buy day, could it be a buy day i.e test of low, or gap up, sell off, formation of higher low????

Any comments from TT experts here.

[Dogpile]

Review of last few days. There is not necessarily a 'Taylor Play' every day. For example, as noted before, an 'inside day' can set-up a breakout where the H or L violation is a 'go-with' -- not a fade.

[monad]

	Quote:	Dogpile
	Review of last few days. There is not necessarily a 'Taylor Play' every day. For example, as noted before, an 'inside day' can set-up a breakout where the H or L violation is a 'go-with' -- not a fade.

Have been following your thread with great interest, think your modification on the Taylor method especially using Market Profile etc, appears to be more suited to today's markets.
How do you read this past week's market action in the context of your method.

[Dogpile]

I wrote a long and detailed response and then proceeded to erase it by accident. The net of it was that this was a great week to be a Taylor/Market Profile disciple. I have annotated a chart and hopefully it makes some sense as I don't want to write out my entire post again.

Maybe someone else can take a crack at a detailed write-up of this week.