The Taylor Trading Technique BETTER
The Taylor Rhythm is simply a large-scale expression of the concept of markets alternating between trends and trading ranges. Rather than trying to apply it with strict systematic rules, I treat this as a large-scale framework, and find that it gives me a great edge in my mental game plan for each trading day.
The Taylor Trading Technique
I have been trading the TTT method for a while now and have develloped my own way of doing that. I made my own books for stocks and for indexes futures, and pushed the Taylor's method to the 21st century. Taylor created this method but when you read his book in between the line you will find that he forgot to write lots of things.
I didn't read all the posts on this thread, however from the ones I read, Dogpile by his own admission is not trading the pure Taylor. "WHY" has a very good grasp of the concept. I believe I am on the pure side also.
This is simply a point about how to interpret price action. It is much easier to understand the underlying forces at work if you have a level in mind. It keeps you honest from fighting the tape too much. 3 possible reference points help me personally. 1) the previous day high 2) the previous day low and 3) the days most heavily traded price. What is the market doing relative to these 3 prices? Learning to interpret action relative to key reference points makes trading much more structured.
Great Effort Frank, at elucidating the concepts of TTT, LBR employs them very effectively in her trading. I believe dogpile has also elaborated on them in many of his excellent posts. you could perhaps follow this up with trading examples in the following weeks, am sure it would be of considerable interest to many here.
ah ok, now its clear why that chart is messy... I consider DAX to be a 'subset contract' -- the German market is only 4% of the world index market value while S&Ps represent 40% -- thus, much of DAX's movement is driven by S&P movement and for this reason, I don't think my style -- which is partly dependent on 'time of day' -- is appropriate for trading DAX.
Forex trading is a lucrative investment opportunity that offers traders the possibility of earning high returns on their investments. The forex market is a highly volatile market, and traders need to have effective trading strategies to succeed in the market. One of the most effective trading strategies in forex trading is the Taylor Trading Technique. In this article, we will explain what the Taylor Trading Technique is and how to use it in forex trading.What is the Taylor Trading Technique?The Taylor Trading Technique is a trading strategy that was developed by George Douglass Taylor in the early 20th century. The Taylor Trading Technique is based on the idea that the forex market moves in cycles and that there are three phases to each cycle. These three phases are the accumulation phase, the distribution phase, and the markup phase.The accumulation phase is the phase where smart money is accumulating assets. The distribution phase is the phase where smart money is distributing assets to the market. The markup phase is the phase where the market experiences a significant price increase due to high demand.The Taylor Trading Technique aims to identify these three phases and profit from them. The technique is based on the assumption that the market follows a predictable pattern and that traders can use this pattern to make profitable trades.How to Use the Taylor Trading Technique in Forex TradingStep 1: Identify the Accumulation PhaseThe first step in using the Taylor Trading Technique is to identify the accumulation phase. The accumulation phase is characterized by low trading volumes and a narrow trading range. To identify the accumulation phase, traders should look for a period of consolidation in the market. This period of consolidation is usually marked by a series of lower highs and higher lows.Step 2: Identify the Distribution PhaseThe second step in using the Taylor Trading Technique is to identify the distribution phase. The distribution phase is characterized by high trading volumes and a narrow trading range. To identify the distribution phase, traders should look for a period of consolidation in the market. This period of consolidation is usually marked by a series of lower highs and lower lows.Step 3: Identify the Markup PhaseThe third step in using the Taylor Trading Technique is to identify the markup phase. The markup phase is characterized by high trading volumes and a wide trading range. To identify the markup phase, traders should look for a period of consolidation in the market. This period of consolidation is usually marked by a series of higher highs and higher lows.Step 4: Enter a TradeOnce the three phases have been identified, traders can enter a trade. Traders should enter a long trade during the accumulation phase, a short trade during the distribution phase, and a long trade during the markup phase.Step 5: Set Stop Loss and Take Profit LevelsTraders should always set stop loss and take profit levels when using the Taylor Trading Technique. Stop loss levels should be set at the low of the accumulation phase for long trades and at the high of the distribution phase for short trades. Take profit levels should be set at the high of the markup phase for long trades and at the low of the markup phase for short trades.ConclusionThe Taylor Trading Technique is an effective trading strategy that can help traders profit from the forex market. The technique is based on the idea that the market moves in cycles and that there are three phases to each cycle. Traders can use this information to identify profitable trading opportunities. However, traders should always remember that the forex market is highly volatile, and there is always a risk of losing money. Therefore, traders should always practice proper risk management and set stop loss and take profit levels when using the Taylor Trading Technique. Facebook Twitter Pinterest WhatsApp Linkedin ReddIt Email Print Tumblr Telegram StumbleUpon VK Digg LINE Viber Previous articleWhat are the currency in ally forex account?Next articleHow to trade forex with money manegamen? 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In 1950, George Douglass Taylor published his book method of day trading,1 which he had been using for many years in both the stock and grain markets.2 The method is based on the experience of discipline and timing, but is carefully set down and can be implemented in either a sophisticated or simplified state. The system is intrinsically cyclic, anticipating 3-day movements in the grains. These 3 days can vary in pattern when they are within an uptrend or downtrend. Taylor's explanation of his method is thorough and includes many valuable thoughts for traders interested in working with the market full-time. The summary and analysis presented here cannot replace a reading of the original material.
Taylor developed his approach to trading through experience and a belief that there is a basic rhythm in the market. The dominant pattern is seen to be a 3-day repetition with occasional, although regular, intervals of 4- to 5-day patterns. Taylor's cycles are based on continuous trading days without regard to weekends and holidays. The 3-day cycle varies slightly if prices are in an uptrend or downtrend. The uptrend is defined as having higher tops and bottoms over some selected time period such as a week, month, or season. A-downtrend is the reverse. During an uptrend the following sequence can be expected:
The actual objectives are extremely short-term support and resistance levels, usually only the prior day's high and low prices or occasionally the high and low of the 3-day cycle, which may be the same prices. On a buying day, the objective is a test or penetration of the prior day's low price, but only if it occurs first, before a test of the prior "highs. Taylor's method is then a short-term countertrend technique, which looks for prices to reverse direction continuously. His belief was that speculation caused these erratic, sometimes large, cyclic variations above and below the long-term trend.
Taylor placed great emphasis on the order of occurrence of the high and low on each day. To buy, the low must occur first. If this is a buying day in an uptrend, a long position is entered after any lower opening whether or not die prior low is reached. Taylor reasoned that because an uptrend is generally stronger toward the close, the first opportunity must be taken on a buyingday. However, if a high occurs first and prices"then decline nearing the lows toward the end of the trading day, no long position is entered. This pattern indicates a lower open the following day, which will provide a.better opportunity to buy. During a downtrend, the violations of the lows, or penetrations toward the close, are more common. By waiting until the next day to purchase, the 3-day cycle is shifted to favor the short sale. 041b061a72