the main rule to follow is
keep the count the same.
if the action profile you are expecting is delayed by a day, then so be it.... act on it when it comes
it could come early or late
an example of it coming early is when the action you are expecting during trading hours happens during the previous globex session
an example of it coming late would be getting a low range chop session ... followed by another session that fits the action profile you are expecting
the main thing is you are expecting at least one movement every three days for a long or short opportunity
we have been getting this very regularly in this bull market
another thing to think about if you want to form a system around Taylor rules is range
.... you must become familiar with the range to be expected from a typical up move or pullback
there is range from trading session low to high
and there is range above previous high or below previous low
and there is range over two day low to high
and there is range from open to 12 noon
you can track these as compared to an absolute number which represents the average
or you can project them based on the previous day's action
the most dependable cycle in the market is the range cycle.
if low range comes one session, you gear up for the next session
if low range comes two sessions, you gear up even more
if high range comes, you gear down for a chop session
if you want you can make an indicator for yourself which shows trendiness
... it would show oversold when going below previous lows, and overbought when going above previous highs
if a significant level is hit fast and hard before noon, you act on it
if the market brings you all the way to previous highs, you act by getting out and thinking about shorting the next session above the high
reading taylor can be frustrating, but to get a feel for it just go back and see what happens when price goes above highs or below lows
.... compare these two things during up swings and down swings
10 or 20 points up or down is just a tiny blip on the bigger swing picture
but while price might not go up but 5 points over a week, you could get swings totalling 50-60 points or more over that same 5 point range
that is what taylor was trying to capture
if you don't want to work on a ten point range basis, work on a 100 point basis by waiting for a 100 point pullback on the daily chart and then getting in
just remember that on the basis of 10-20 range points, price action is just noise .... just stop running
there may not be any real attempt to go higher except from week to week... so just forget about thinking in value terms
also, it may help you to split the session in to two separate sessions.... divided by 12 noon
most days are some sort of down move , then an up move ... in a bull market
or an up move , then a down move .... in a bear market
a trend day is composed a move followed by a pullback , then an equal move in the same direction
don't worry about trying to catch a trend day, just follow taylor's rules
thursday is buy day ... but
the but is that buy day begins with the new globex session
......so i
