Traders Laboratory - View Single Post - Taylor Trading Technique Nov 2007
View Single Post
  #21 (permalink)  
Old 11-07-2007, 09:10 AM
Dogpile Dogpile is offline
Dogpile has no status.

 
Join Date: May 2007
Posts: 577
Thanks: 0
Thanked 8 Times in 6 Posts
This member is the original thread starter. Re: Taylor Trading Technique Nov 2007

for today (Wednesday):

1) Market is starting LOW relative to 15-min 20ema but not 'extremely low' (location does however argue for a buy trade first)

2) The last 2 days have been 'low to high' (arguing for a 'high to low' day = bearish)

3) Violation of 1503.50 to downside sets up a 'buy' for a trade back towards 1503.50 (arguing for a long-side trade)

4) Support-Resistance:
The market has not been able to stay below 1503 and not stay above 1514 area. These are the support and resistance levels.

------------
Summary:
If we trade UP towards 15-min EMA, location for a short would improve to play for a 'high to low' day after 2 low to highs.

If we trade DOWN first and violate the 1503.50 low, this would argue for a long-trade as you have good location on your side and a standard 'low-violation' buy set-up. I prefer these if done into big support area -- and I don't see a big obvious one below the 1503 number.

As always, be aware of possible 'trend-day' conditions. If extremely strong range expansion off opening price to downside then the best play might be to wait for a reaction up toward 15-min EMA to short. Admittedly, this would be a tough set-up to trade as it would be right into a 'low violation' -- which is a Taylor 'buy-factor'.

I think I have listed the factors to weigh though. Watch price action vs vwap and volume/breadth for further 'intraday clues'.

Reply With Quote