monad

kind of simple in my trading approach, all this sound pretty sophisticated stuff to me, a few solid concrete examples on an intraday chart would not be out of place.

Enough has been said on this subject, best to leave it at that. Otherwise it will all start again - if you have been reading similar threads in the past week or so. It does not make an iota of difference to TG what we think or debate here, they are on the roll. If VSA (all or some of it) is useful to your trading, go for it other wise leave it, move on to another method.

Good on you Tawe SAME but in reverse, climactic action on high vol after a trend up, weakness now, at previous resistance levels, A: prices move down easily as no support from buyers, sellers able to offer it down. B: no demand after weakness in the background C: AGAIN climatic action after price fall, strength appears, supply gets absorbed, prices move up on low vol, less resistance from sellers. How I see the market and trade, why make it complicated.

Tasuki, After a substantial downtrend, it indicates that the supply has been absorbed on the previous high vol down bar (strength appears on down bars) and now the buyers are able to push prices up without meeting much resistance. No demand is of more validity after a rapid rise followed by a climax ie. signs of weakness.

WHY? when you get time Could you look at post 338, just mark yes , no , if no, just a brief comment will do. that way I know I am on the right track. thanks.

Great posts ed...... keep it up regarding Eurostoxx which trading platform you employ and how do you find liquidity on that market, what about the fills, slippage etc. and have you looked at other european markets in comparison.

Agreed, if somebody already has a easier way of trading and is making money, then what is the point. Idle or passing curiosity out of boredom don't think will work with Taylor, it will just get more boring as it is a real slog to go through the book. Better to take up another hobby to deal with boredom or join a gym. Any number of lines can be drawn on the chart, market is not aware of those and does not care, which one will hold or not , we are never sure, only in hindsight. But with Taylor's book, there are buying and selling objectives, if these coincide with any other fib levels or pivots, so much the better. Back to markets WHY? Globex had a run upto 820, a gap up on the day session, allowing a short and a low created before noon, to go long, whatever the market gives, but in accord with the scenarios you laid out.

Good points jj, were you ever in diplomatic service:) Lets not forget politeness, respect also has to be there towards each other. Otherewise it is back to square one. Degrading somebody with less knowledge would not work. IMO

Well it is your choice, take the easy route of S/R and price action with patterns with Drummond Geometry, why bother with Taylor at all if there are far easier ways to trade.

As WHY? says it will require 50 reads or some more:), most give up by then. When you manage do boil it down to a few principles, would be glad to see them

Hakuna, appears you are getting the hang of this methodology, despite what anybody says, there is considerable potential. WHY? is absolutely convinced of that and I tend to believe him after having observed the price action over the last couple of weeks.

What is "Shapiro Effect"

1. Taylor instructs that " a flat or weak close on a Buy day indicates that short interest is no hurry to cover and hence B.V is expected", hence any longs taken should be exited on the same day. 2. Moreover "flat or weak closes usually occur in downtrending market. hence all the rules are in place to close out the long position. 3. As you say and Hakuna also spotted 15th provided the opportunity to short on early rallies on small time frame where the tanking process you described could be clearly observed. The prices on ES declined rapidly to ~815 (approx buying objective) , where longs were in order(10.40ESt), the rally then faced resistance from previous swing low around 825, still 10pts in it for the long trade. 4. Then the decline led to another low during lunch and as Hakuna pointed out, formed sort of double bottom which was much clearer on the Nasdaq along with the price/vol action. Not stictly Taylor who advocated long before lunch but tape reading indicated such an action then, hence a long opportunity was there, again to be exited by the end of the day as the downtrend is still in place and the close on this SS day is just above the open. On candlestick charts it is ideal hammer indicates buying pressure is winning. 5. Today 16th is a Buy Day, as we are starting from a downtrend, if the market opens high, it can be shorted but not held too long as shallow retracement can be expected. Then it is a question of watching the highs to see if there is consistent failure to penetrate.

It is not widely followed because it is not about signals or latest hype, it is creating a book as richbois and WHY? have outlined, then setting about identifying the cycles and then working out strategies for each day in advance. The strategies are then implemented via tactics determined by tape reading i.e intraday price action depending on whether a high or low is made first and when. The primary confusion as you will see if you read this thread from beginning is regards the terminology Buy Day, Sell Day and SS day. You could use day 1, 2 and 3 if you wish (refer to the book). This means you could be shorting on a buy day and going long on a sell day. This confuses most people and they give up as there is a tendency to read todays action, brand that as a buy or sell or ss day and then fit it into the cycle. That will as WHY? has pointed out will not work. But once you put in the hard work you will be pleasantly surprised.

I have spoken to Todd whilst he was at Tradeguider, as I have mentioned before he knew what he was talking about. If you listen to his 30min video you will notice he does not engage in bar by bar hindsight analysis, he always referenced Wyckoff and Richard Ney. At least you will get a good head start on Wyckoff and Todd is always willing to help unlike TG where the only interest is to sell the expensive software. This plus the info. here on the Wyckoff forum should provide background to reading price/vol relationships. Follow your own instincts, give it a try $199 is not such a big deal, just small overheads to set up a business. The alternative is the $1000 SMI course. You could also learn a lot at ltg-trading archives, do not necessarily have to subscribe to anything- just overlook the extraneous phrases like jumping the creek, ice breaking etc, very similar to what is going on in the VSA world. You can step back and not get into all that hype and still learn to read charts:) BTW I have no affiliation whatsoever with Todd, thought he was still in court case with TG, infact only learnt about him recently when I visited this TL website.

WHY? getting back to my post 313, would appreciate if you could spare some time to add/modify etc, for I am really beginning to understand Taylor now, thanks to you. You have dealt with the Buy day. 2. SELL DAY: Again both long and short trading possible. a) High made last on Buy day: Look to short on penetration of this high or failure to penetrate. b) Low made last on Buy day: look for long opportunity at open , however if prices drop below the low then that is B.V and hence the long should not he held too long, target would be around the low of buy day. Next level would be the High of Buy Day if uptrend continues. Many times the prices rise even further and a High is put in last on Sell day. c) If flat close on Buy Day, again, wait for tests of the low of the buy day before considering long. 3. SS DAY: According to Taylor strictly no longs on this trade, however if I understand you guys correctly, both longs and shorts can be considered depending on previous days action. a) High made Last on Sell Day: Look to short on penetration or failure to penetrate. b) Low made Last on Sell Day: Note if B.V has occurred, then longs can be taken with similar target as that on sell day. c) Flat close on Sell Day: both longs and shorts possible on open??????

That does not automatically mean that these cycles as per Taylor do not exist in the market. I was skeptical myself at first, had the book for a few years now, have made attempts to read and then given up many times, finally decided to have a real go, that effort together with the various posts here made me realise there is much more to this method than meets the eye. However am not surpirsed that most would want to throw in the towel for it is not easy reading at all, you just have to read the reviews on Amazon.com. Those who have persisted have seen the light of the day and consider it priceless, those who haven't announce it is obsolete and irrelevant. As WHY? has explained in detail, understanding Taylor method allows you to have strategies in place for the trading day, then one has to employ tactics via tape reading, price/volume etc to implement the strategies for each specific day. This way the trader has a specific plan for the day with the trading rules laid out by Taylor and not end up shooting from the hip.

Also if a low was made before lunch on a Sell day, which has just happened, a long can be taken but once again not held too long.

As WHY? pointed out in one of the posts, in a bear market or a strong downtrend, expect BUY DAY VIOLATIONS and caution on any long trades which need to be exited quickly , the rallies are short lived which will be indicated by tape reading or price/vol, i.e less vol, narrow range bars etc. Today is a classic example. Anyway WHY? may have more to say on this.

So far the scenarios have played out well WHY? Attached: Cash chart and also that of Globex plus Day session (ESmini futures) The market dipped below SS day's low before rallying, providing the long opportunity and then hit resistance around 873 affording a shorting opportunity.

WHY? As per 305(richbois) post, 6th Jan 2009 was a Sell Day, which would lead to 8th Jan Thur being a Buy Day, 9th Jan Friday as a Sell Day and yesterday Monday 12th Jan as a SS day. I have attached a SP CASH chart for 8th Jan-12th Jan, Buy Day, Sell Day and SS day. Here it is the reverse of the situation of what you have just explained. The Low of SS day being lower than the Low of Sell day. Could you comment on these 3 days. Also today in this sequence (could be different as per your calculations) Today would be a Buy Day. Now the various scenarios described under Buy Day, this would fall in category (b) i.e Low being made last on a SS day, hence look for low made first on a Buy day within first 2hrs to go long. Am I on the right track.

No problems at all, am grateful for your input and insights, does shed considerable light on what at first glance appears to many as obsolete. Besides referencing and correcting, for the Sell Day and SS day, please also include your own comments and examples as you did for the Buy Day, that has been of great help indeed. BTW © above , the stringing of the sentence very much looks like as if you have been reading Taylor over and over again:) I guess what this indicates is that if the Low of the SS day is higher than the low of Sell day, one would expect a shallow retracement on the Buy day which would be the most likely scenario in an uptrend.

Exactly, majority are just happy to regurgitate the latest fancy names of patterns or bars which they have picked up via seminars, DVDs, books etc. and then aggregate onto these threads where they all can talk the same lingo. (feel good factor-part of the gang) Check out woodie who stands out above all with all his Ghosts, shamu, and god knows what else. Same has happened with VSA(UK) once it changed to Tradeguider in US

Don't think they have much problem with credibility, their cyberspace rooms are packed with suckers who are led to believe they are onto something unique. Just listened to a recent video sent by jj, same old stuff, Tom sounded worn out, Manby (needs voice modulation lessons), Gavin announcing the release of new Tradeguider Software pack, plus all the exciting seminars, events, chatrooms for 2009, so there you go, does not matter what anybody thinks of VSA in here, can keep on debating till doomsday, TG is going from strength to strength for the time being:)

Have just read that again, did not see the 3rd example yesterday, can't remember reading that part, beginning to doubt my mind own mind now, or is it just with everything you read on Taylor where you keep going back and forth on a single sentence to understand the meaning:) Anyway great examples, greatly appreciated once again, Look forward to those on Sell Day and SS day. could you also reference mine and point to which are correct and which are wrong