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Taylor in General


The only stock mentioned in his one and only book was US Steel (USX) which he apparently traded over and over since their were specific examples dating back to 1933 (the book written in 1950).

You have a distinct advantage over Taylor by being off the floor and the ability to maintain numerous spreadsheets of multiple stocks.

The crux of his method is measuring the swings. The high from day 1 to the low of day 2 he designated....... DCL. The low from day 1 to the high day 2 as...... RLY. Grapically, this makes an "X"

Futhermore, any Day 2 high that exceeded day 1's high was quantitfied and labeled ......BH. Any day 2 low that was below day 1's low was designated......... BU

So, picture a slanted box with an "X" in it.

Additionally the trader observes whether the high or low was made FIRST each day, which requires a certain amount of waiting. HOW can software do this??? IT CAN'T.

This is a TWO day trading method, and within the context of a multi-day swing, straighting out a crooked line reveals the magnified amount of money that can be made over merely holding the duration of the swing.

In the context of being long only, the intent is to buy near the low of Day 1 and sell near the high of day 2. Day 3, was considered the short day. A buy day is LMF, a short day is HMF, and the sell day can be EITHER ( a zig zag day)


Putting these actions in a MATRIX:

BH HMF..............................................Short

BH LMF..............................................Hold ALL day

BU HMF...............................................AVOID

BU LMF............................................... BUY


Obviously "they" don't ring a bell telling you if today is LMF or HMF, that's where trading intution, and YOUR skill (not software) play their role.

Simply put, you cannot have a strong rally day without a SMALL DCL.