Taylor trading technique

"Taylor trading technique", a short-term method for trading on intra-day price movements that relies entirely on odds and percentages. It is a method as opposed to the system. Very few people can blindly follow a system, though many find it easier to be controlled by the system approach.
As a short term swing technique (technique based on the vibrations) leads to frequent transactions, it is important to know the rules of the game to capture profits and to seek the "true trend". Loss accepted, just to get into a better position. Trade is conducted strictly to obtain a future result, not based on what can make the market.
Know the "rules of the game" means knowing when to buy or sell, exit or hold. Transactions are based on "objective points", which are simply highs and lows of the previous day. The movement between these two points determines the "true trend".
When you trade on the fluctuations, manage your expectations. The lower your expectations the happier you will be and, surprisingly, the more money you will probably be able to do! The entrance to the market is a piece of cake, but you must also trust yourself to get out of bad trades. It is important to use a closer stop orders when trading on the movement and the wider stop orders when trading with the trend.
This method teaches you to expect! Never respond! Know what you are going to do before the market opens. Always have a plan - but be flexible! Consider your stop order (support or resistance) before opening a position. Know how to trade in case of unfavorable development of events and to get out of losing trades with the least loss.
Finally, never trade in narrow, dead markets. Them the vibrations are too small. Never chase the market. Instead of worrying that you missed a move, think instead, "Great! I have a movement in the opposite direction".
Basic rules for swing trading

Due to the short term nature of this technique, swing traders must adhere to some basic rules, including:

· If the market moves in your favor, move the position to the following day. Plan to leave the next day near objective levels. Night GEO is an excellent opportunity to take profits. Concentrating on only one market entry or one exit per day reduces psychological pressure.

· If your entry is correct, the market should move in your direction almost immediately. He may return to test and exceed your entry point a little, which is normal.

· Do not carry a losing position for the next day. Go out and play the next day in a better position.

· Strong close indicates a strong opening the next day.

· If the market is not, as expected, come the first rollback.

· If the market offers you more profit, take it.

· If you are in a long position and the market closes flat, indicating a lower opening the next day, exit the position. Play the next day with a better position.

· Use a close stop orders when you trade on the fluctuations (wider stop orders when trading with the trend).

· Goal always is to minimize risk and to make money.

· When in doubt - get out! Have you lost your compass and your game plan!

swing Trading

When to enter the market? The following may be an indicator of the date of purchase or the date of sale:
Start looking for the day of purchase 2 days after fluctuating up or, on the contrary, the day of the sale 2 days after the vibrations down. Ideally, if the market will move in a full 5-day cycle. (In a strong trend the market will move 4 days in the primary direction and only 1 day in a correctional. Thus, you need to seek entry 1 day earlier.)
"a Bird" when you test
Potential entry point is selected opposite to the previous day's close. If considering buying (selling), you want to market first "tested" the minimum (maximum) of the previous day, preferably early in the day, and then form a trading model, which resembles the "bird" (see examples).
Day Cycle
This model establishes a "double stop point" or strong support. At the entrance to the market with only a "one point stop" or support formed by today's low only, exit on the same day, the trade is clearly against the trend.
the Closure against the opening
The closing should indicate the opening of the next day. When the market opens not as expected or indicated by the trend, you can first wait for the changes - but you must quickly take profits. Then see the reversal!
Support (resistance)
View where is today's support (resistance) above or below yesterday's.
Measurement of vibrations
Where is the market relative to past fluctuations up or down? Look for swings (up or down) of equal length, and restores the same percentage.
Additional comments
Regardless of the time frame, always look for resistance at the top and support at the base. The crossing shall be accompanied by the volume and increased activity.
The following conditions are reliable enough to start uptrend or downtrend.
- Narrowest range in the last 7 days
- 3 consecutive days with small range
The point of the wedge
- Increasing ADX (14 period) above 32
As the acquisition of confidence in any technique requires that it is applied consistently while trading, trade on trial accounts can help you gain the confidence necessary to recognize this technique and trade on repeated patterns. Although there is always the temptation to try many different styles and techniques, one must strive ultimately to trade in just one consistent manner - or at least to integrate the methods into your own unique philosophy.
system Features

Some points if you trade on short-term fluctuations deserves attention. Understanding of the nature of short-term systems can help you understand the psychological aspect of trading.

When consistently followed by a short term system, you should expect a very high ratio of win/losses. Although the goal of this style of swing trading appear conservative, you almost always will experience "positive movement".

In all systems, the winners are distorted. Even when you receive a steady profits, 3-4 really big trades may actually determine the month. It is vital to always "fix" your profits. Do not give profits back in the short trade.


I think it is very important to discuss this topic. Every time you enter a trade, you make a decision. The more decisions you make, the more you boost your self-esteem.

You grow with every decision because every decision has a price - you must opt out or you have to make a choice. Conditions are always imperfect! You should allow yourself to fail.

There is so much instant information available today all market players. It would be good to use intuition and listen to that little voice in your subconscious "whether trade right?" If in doubt - get out!

Golden Rule

Finally, the two Golden Rules, applicable to all traders but particularly important in the short swing trading:

NEVER average losses! Close, if you think that's wrong. Will open again when you're sure right.

- NEVER listen to someone's opinion! Only you know when your transaction is not working.