some people think it is harder than it really is.
just think ... buy significant lows, short significant highs
that's all it is
go back over the chart for the past, and just see what would have happened if you bought every time price went 5 points below the previous day's low
and 10 points below the previous day's low
then go back and look at those trades and see which ones get you stuck and which ones don't
on the ones that get you stuck, try to figure out why
on the ones that don't get you stuck, form a set of rules around that
look at the moves below previous lows during up swings, and look at the moves below previous lows during down swings
how far below do they go during up swings, how far below do they go during down swings
see how and why you get stuck buying below previous lows during a down swing.
what you should find is that you will rarely get stuck just buying a certain distance below the previous low as long as you stick to your rules about your exit and stop position
once you get a feel for that, the next step is to get a feel for the swings.
in a down swing, you want to have a small target
in an up swing, you want to stay in the trade for the swing if possible.
the swing happens fast so usually it means you will stay in another day or 2 maximum
taylor's book is hard to read, but if you just keep thinking (buy lows sell highs) as you read it , it is not so complicated
if you summed up the book in one sentence it would be buying lows or selling highs at least once every 3 days... that's it.
for example, if buy day comes and there is no pullback or a higher low is put in.... you just wait for buy day action .... another day, another 2 days
or another example, you get buy day action on buy day and a bounce.... yet the next day makes a lower low still, so you just repeat your action
usually this will happen in a down swing.
... you might not get a swing entry for 2 or 3 tries, but if you keep going, eventually you will get the swing turn if you follow the rules
.... and you should be able to get a small profit on most entries if you enter at a threshold distance below the previous low.
when a down swing is starting, that first day might put in a high 10 points above the previous high... so you have to take that into account before you start thinking about going long. even if the range for the day is 20 points already, make sure you follow the rules and use stops.
even in a down swing, that first day of the down swing is the one you have to be careful on.
for example, it is the first day of the down swing, and price has dropped 20 points and you feel like you are getting a discount but it is not below the previous low.
taylor says don't go for it unless it is buy day and unless it is at least a certain distance below the previous low, and he says don't enter unless the action happens early in the day rather than at the close
you are just looking for a high made first or a low made first.... qualified by a certain minimum range on the move
.... i don't think anyone is trading taylor ..... that's good
.... and those that are just do their own thing with it, because they think his original system is outdated
.... people who post about trading on forums are jack asses, and that goes for me as well : )
Thank you for this advice.
For me the Taylor Technique is difficult to implement,
takes a certain kind of mind/intelligence which unfortunately
I do not have.