My version of monitoring
Taylor concepts:
Week in Review:
I have plotted at the bottom what I think is a helpful indicator to help with 'location'. This has to do with 'location'. Thus, I have plotted an indicator that shows where price is starting the day relative to the 15-min 20 period exponential moving average. The market will 'test' this 15-min 20ema almost every day. One idea is to counter-trend trade the morning session (like
Taylor did) if the market is starting FAR away from the 15-min 20ema. This cannot be taken in isolation -- it depends on the last few days of action but this is a good additional indicator to think about as you review the action going on, IMO.
So here are my concepts to monitor:
1) do you have a high or low 'violation' (violation of previous day high or low)?
2) what has been the recent action (last few days) in terms of trading 'high to low' or 'low to high' (this is the first indicator)
3) is price starting the day FAR away from the 15-min ema?
If you have had 1 to 2 'High to Low' days, then a low violation with price starting far away from 15-min EMA, be careful of shorting and consider the long-side.