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Day Trading with TTT and other tools


Welcome to this new thread, where we can share trading ideas and our thoughts on the Taylor Trading Technique.

Anyone with questions on TTT, this is the place.
Yes it is a right old slog going through the book but worth it.
On my part I have proved for myself through observation the market manipulation occurring as per Taylor's method and rules, hence am free of any doubts about his methodology, although do not strictly adhere to the rules and let the price action call the shots.

In Chapter 8, he does make a reference to price action on a SS day which would indicate a higher close, so I suppose that is what you might have read and understood.
"When a Short Sale is made on a Short Sale Day—even on a penetration—of the Selling Day High—then declines from this high but at the low point of this decline the market becomes quiet and dull (with perhaps a few transactions at the same low price) then begins to rally—Cover your short sale, and just as the rally starts, the indication then, is for a strong close and the stock may even make a new high for the day
Close to textbook action today -Buy day. following a HB first.

The reason for short selling on the Buying Day high made FIRST, is that had the rally been in progress from the last Buying Day Low, it would be the (4th) day up and the rally would be in the process of exhausting the upswing and in many cases the stock makes the high on the Buying Day—when preceded by a Buying Day Low Violation, it is being made after (3) days of rally.
Does anyone risk about a day's range in the hopes of catching the "whole cycle"?. It seems to me that most of the short term tactics manage to get stopped out or miss the moves entirely.

Any suggestions for a "keep-it-simple" application of Taylor's trades?.

For example shorting yesterday's SS day above the Sell day highs would have paid off on today's BD drop, if only a wide enough stop had been employed, but most "short term tactics" would have missed the move or stopped out.

Please discuss.
Durendal,
Think Richbois has made it as simple as it gets.

There are some basic rules for trading each day of the cycle. Fundamental mistake made by most is trying to fit/force the day's action in hindsight into the cycle. ie. uptrend action into buy day.
Once you start the book as per Taylor, the cycle should be kept intact. Then the rules for each day take over.
Multiple study of each chapter of the book is mandatory, I must have gone over each may be over 20times, each para, taking notes, making diagrams, studying charts over months to verify etc.
Am afraid, there are no shortcuts?

Maybe Richbois or others could expand on the subject...............
As for intraday trading, depends on the goal, do we want to catch the whole swing or just a portion as per the main play of the day which in turn depends on previous days price action.

If the latter, then have to decide which timeframe to operate from, obviously if the desire is to maximise then trading from higher timeframe 30min etc would be the way but in this case the risks via employing larger stop loss is there but then the profits are relatively large as well.

OTOH, on a 3min or 5min, the risks are small and the profits likewise. Taylor emphasises the need to acquire the skill of tape reading for entry and exit. Here any number of technical analysis tools can be employed ie. fib levels, mTP, chart patterns, price/vol supply and demand etc.
Well Richbois, what a SS day on Friday, this is the 2nd time in 2 weeks that the 3 Day Rally rule has been broken.

As WHY? had pointed out with great insight on the Taylor thread at Traders Lab a while back, the ideal 3 day cycle is normally present in sideways market but in a strong up or downtrend, one should be prepared for deeper penetration of buying and selling objectives, ie. decline Zero and Rally Zero.


Did you take the late long as it clearly is a BV buy?
Wow again I didn’t get notified of the posts that were done.

Thank you well done Rigel for answering with chapter and verse

Durendal, we are all different type of traders and as Rigel pointed out our risk tolerance is also different.

Personally I have a money goal in mind and once it is achieved I am ready to quit.

Some of us use ATR stops to manage the trade once triggered. Some will use the same AYR stops but on a larger time frame in order to stay in longer.

I personally like to take multiple lots when entering a trade and once a preplanned level (based on my Risk/Reward calculations) is reached, I close a large portion of the trade and then trail the stop on the remainder.

In my reports we also have the average range for each individual day. So once that is reached, than we should be tightening the stops.

I never tried to trade the 3 Day Cycle per say, meaning get in on the low of the Buy day and exit on Sell day high or SS day high. I just don’t fit in my Risk Tolerance. Well that is not entirely true, I did do that but with stocks where there is not the kind of leverage that is involved in Futures.

Yesterday was a Second failed 3 Day Rally which like Rigel and WHY pointed out usually occurs when the trend changes direction. Or at least tries to change direction.TTT works really well in trending markets.

I didn't take that long yesterday even on the BV and the reason was that we had a huge gap at the open, making the violation so much greater, and that made TVGR stronger. Also my weekly goal had been reached, so I didn't need to trade.
Thanks for the answers guys.
Originally posted by Durendal

Thanks for the answers guys.


anytime keep asking
As an example of what I was trying to convey:

Today is SS day. Weakness yesterday's late afternoon indicates the decline started. Rather than overthinking, let's assume a short on yesterday's close at 1063.50, with the intention of catching a decline to the buy day low (tomorrow). By the close today we'll know if we lose or win. The overnight has been higher (1071.50), so no problem in shorting 1063.50 or better. Assume a full day's time risk and see what happens.

Maybe one can refine this later with the use of pivot levels and what not. Just an approach for those that do not wish to monitor a short term 1' or 5' chart with thousand possible entries.
I hope all you TTT traders had a good 2014 and I wish you all a better 2015
Richard