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Hi folks,
I recently read a book by George Angell - "Sniper
Trading" - which I thoroughly enjoyed. One of the things he covers is the
'Taylor Book Method', created by Taylor approx. 50 years ago. Part of the method
is to use EOD prices to calculate a 'buy envelope' and 'sell envelope' for the
next day - zones of support and resistance. It also gives a forecasted price
Range. Angell's book provides the maths so I coded it up for Metastock - see
formula below. This formula is for use in the Commentary of an Expert. The way I
use it is to open a daily chart from the night before, transcribe the Taylor
numbers onto paper, then open an intraday chart and place them in the form of
horizontal lines. I've been amazed at the way the zones catch some of the tops
and bottoms in the cash currency markets, and especially the 'LSS Pivot Breakout
Buy/Sell Numbers' (which acts as a Pivot - i.e. use for failure or
breakout.)
Here's the formula. All suggestions for improvement
welcome. Thanks to George Angell for a great book.
Regards
Nick
SELL ENVELOPE
Rally Number: WriteVal(<FONT
face="Times New Roman">(L + ((H-Ref(L,-1)) + (Ref(H,-1)-Ref(L,-2)) +
(Ref(H,-2)-Ref(L,-3))) / 3))
Buying High Number: WriteVal(<FONT
face="Times New Roman">(H - ((H-Ref(H,-1)) + (Ref(H,-1)-Ref(H,-2)) +
(Ref(H,-2)-Ref(H,-3))) / 3))
Today's High: WriteVal(<FONT
face="Times New Roman">H)
LSS Pivot Breakout Sell Number: <FONT
face="Times New Roman">WriteVal(<FONT
face="Times New Roman">(((H+L+C)/3)*2)-L)<FONT
face="Times New Roman">
BUY ENVELOPE
Decline Number: WriteVal(<FONT
face="Times New Roman">H + (((L-Ref(H,-1)) + (Ref(L,-1)-Ref(H,-2)) +
(Ref(L,-2)-Ref(H,-3))) / 3))
Buying Under Number: WriteVal(L -
(((Ref(L,-1) - L) + (Ref(L,-2)-Ref(L,-1)) + (Ref(L,-3)-Ref(L,-2))) /
3))
Today's Low: WriteVal(<FONT
face="Times New Roman">L)
LSS Pivot Breakout Buy Number: <FONT
face="Times New Roman">WriteVal(<FONT
face="Times New Roman">(((H+L+C)/3)*2)-H)<FONT
face="Times New Roman">
EXPECTED RANGE:
Final Sell Number: WriteVal<FONT
face="Times New Roman">(((L + ((H-Ref(L,-1))
+ (Ref(H,-1)-Ref(L,-2)) + (Ref(H,-2)-Ref(L,-3))) / 3) {Rally
Number}
+
(H - ((H-Ref(H,-1)) + (Ref(H,-1)-Ref(H,-2)) + (Ref(H,-2)-Ref(H,-3))) /
3) {Buying High Number}
+
(H)
{Today's High}
+
((((H+L+C)/3)*2)-L<FONT
face="Times New Roman">
)) {LSS Pivot Breakout Sell Number}
/ 4 )
Final Buy Number: WriteVal<FONT
face="Times New Roman">((H + (((L-Ref(H,-1))
+ (Ref(L,-1)-Ref(H,-2)) + (Ref(L,-2)-Ref(H,-3))) / 3)<FONT
face="Times New Roman"> {Decline Number}
+
(L - (((Ref(L,-1) - L) + (Ref(L,-2)-Ref(L,-1)) + (Ref(L,-3)-Ref(L,-2))) / 3))
{Buying Under Number}
+
(L)
{Today's Low}
+
((((H+L+C)/3)*2)-H<FONT
face="Times New Roman">
) {LSS Pivot Breakout Buy Number}
) / 4 )
Expected Range: WriteVal((((L + ((H-Ref(L,-1)) +
(Ref(H,-1)-Ref(L,-2)) + (Ref(H,-2)-Ref(L,-3))) / 3) {Rally
Number}
+
(H - ((H-Ref(H,-1)) + (Ref(H,-1)-Ref(H,-2)) + (Ref(H,-2)-Ref(H,-3))) /
3) {Buying High Number}
+
(H)
{Today's High}
+
((((H+L+C)/3)*2)-L<FONT
face="Times New Roman">
) {LSS Pivot Breakout Sell Number}
) / 4) - ((H + (((L-Ref(H,-1)) +
(Ref(L,-1)-Ref(H,-2)) + (Ref(L,-2)-Ref(H,-3))) / 3)<FONT
face="Times New Roman"> {Decline Number}
+
(L - (((Ref(L,-1) - L) + (Ref(L,-2)-Ref(L,-1)) + (Ref(L,-3)-Ref(L,-2))) / 3))
{Buying Under Number}
+
(L)
{Today's Low}
+
((((H+L+C)/3)*2)-H<FONT
face="Times New Roman">
) {LSS Pivot Breakout Buy Number}
) / 4 )) )
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