ES Journal Archive (2006 - 2008)

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Quote from smilingsynic:

Stops should be placed enough from support and resistance so as to avoid getting stopped out needlessly because of noise.

Although I consider this a swing trading method that ideally should be held at least 2 days, I'll bail if the intraday market action suggests better prices.

For instance, if the market is "oversold" on a 2-3 day basis, I'll buy a lower 9:30 open. If that open does not appear that it will hold, then bail.

I did not buy the lower open today because the market did not close weakly yesterday.

"Oversold" market + weak close + lower open next day = long-bias.
"Overbought" market+ strong close + higher open next day = short-bias

I don't think stop placement with Taylor can be automated. Rather, it is more art than science, and it comes from studying price action over many years.

Most traders give up long before then.
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thanks for your thoughts,
i read the taylor trading technique book 3 times and tried to trade it for months, it's very hard imo.

i read a book by g. smith (how i trade for a living) by chance and there he mentioned that he knows/ knew a lot of traders that tried to automate the taylor method and they all went broke
 
I like the volume coming in here and the divergence... long 40.25 stop 39.50

stop changed to 38.25 because I have the 38.2% major fib at 38.75 and don't wanna get shaked out for something stupid... what you said BVAM is true
 
Bottom for today is either in place or almost there. Long here at 40.25. Stop at 38 or so. This is high probability trade, so trade aggressively.
 
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