|
PureBytes Links
Trading Reference Links
|
Charles:
The Taylor Trading Technique should probably be used as an "indicator" or
"tell" for other market analysis. I don't feel that it could ever hold up
to the test on a standalone basis. However, I believe that if you
understand the 3-5 day cycle and then looked at support and resistance
points within these cycles you could find some excellent low risk entry
points. LBR is great at explaining these concepts in some of her articles
that have been published in Futures Magazine. She is very aware of where
the price points are and what the Critical Times of Day are and she uses
these to her advantage. Most importantly, the Taylor Trading Technique
gives her a framework from which to look for the set-ups on very small time
frames during the day. This is the real secret to the system...
Pete Beckwith
-----Original Message-----
From: charles meyer <chmeyer@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Saturday, May 01, 1999 6:49 AM
Subject: TAYLOR DAYTRADING QUESTION: (Long Post: Delete If No Interest)
>Group:
>
>I am at a loss for understanding the proper techniques described
>in the literature for 'rephasing the cycle'. Anyone who has studied
>Taylor's ideas knows that the market does not repeat in a simple
>cycle of buy day, sell day and sell short day. Here is the problem
>I'm having.
>
>1. In "Street Smarts", Chapter 8, LBR introduces the 2-Period ROC
>in an attempt to figure out "which day should be a buying day and which day
>should be a shorting day". Her rules state that "we want to
>go home long if we have been on a sell signal and the price then closes
>above this pivot number". The inverse for a sell signal. Her
>charts on page 62 and 63 then show how this indicator highlights the two to
>three day market cycles to wit: "Notice how nicely Taylor's
>rhythm sets up. Point 2--buy day, exit the next day. Point 3--sell short
>day, exit the next day. Point 4--buy day, exit the next day. Point 5--
>sell short day, exit the next day, etc". Note I pose a question below
>that this indicator logic seems to beg her own question.
>
>I have to believe that Linda got this idea from Angell who introduced
>what he called the 'Trend Momentum Indicator' in his treatsie titled
>"The LSS 3-day Cycle Method: A Day-Trading Approach To The
>Markets". The method of calculation, to my understanding, is identical to
>the 2-Period ROC.
>
>I am confused about how to use this indicator to rephase the cycle
>as discussed by Angell in a section similiarly titled: 'Rephasing the
>Cycle'. Although I have read and studied the material, I am still not
>certain exactly how to rephase the cycle. Either I am scotomized
>from seeing what Angell is trying to describe or his multiple descriptions
>and explanations are not clearly written. For example,
>he states that "the rule for rephasing the cycle when you use the trend
>momentum indicator is simple: each time the trend mometum in-
>dicator changes direction, the cycle is rephased. Rephasing involves
>going back ten days and taking the lowest low as the new L-day (Buy
>Day) and then counting ahead, L-day, S-day, SS-day, and so on."
>Further along he says: "Let's say that before rephasing, today was
>designated as a SS day; after rephasing, following today's close,
>however, today's SS-day becomes an L-day, or Buy Day. Hence,
>tomorrow's anticipated cycle day is the following day in the cycle, the
>S-day, or Sell Day". Huh? What about the previous 10 day bit? His
>attempted explanation, it seems to me, gets more complicated and
>at this point I'm not sure if further quotes serve any useful purpose.
>
>What further complicates this issue is once the 'Trend Momentum
>Indicator' (2-Period ROC) indicator has fliped or changed directions,
>isn't it AFTER THE FACT that now you know the day in question was
>a Buy Day AFTER a change to UP and a SS Day AFTER a change to DOWN?
>Finally, how does one use this indicator to rephase the
>cycle?
>
>Does anone care to provide what must be a simple explanation which
>for some reason I cannot seem to understand? Thank you for your
>time and attention.
>
>Charles
>
>
>
>
|