Not sure if this an appropriate question, however, in his book Chapter 12,
Limit Day Moves, do you have an interpretation of what he meant?
Or was this chapter only applicable to the period he was trading i.e. 1940/1950s?
monday is SSD ... for a short on a high made first.... above the high of SD ....
for a switch back to long
bears think the higher a market goes, the more it should start to fall
traders don't think... they just look for objectives made on the first move of the day
it is interesting what Taylor says about 10 point moves.
always look for an objective made first on a move of around 10 points
the pullbacks have been less than 10, but the volatility has been a lot lower too
don't really like to take shorts in a bull market but it is true that shorts play out a lot faster than longs do
... and as Taylor explains, a short play can allow the trader to lower the cost of getting long early when a drop comes fast and hard
... on a short sell day when it opens lower on a gap down
taylor says to leave it until buy day
buy day starts with the globex session
there was no chance to short on SSD as the high was on SD
you could go long on a low made first on SSD, but a high was made first
...this is a perfect example of why it is so important to take profit on BD longs at the previous highs
..... if you hold on too long, you have to sit thru this kind of a drop sometimes
... this is also an example of how the daily objective method is superior to the 3 day method when the trend is not in full effect
.... it takes a lot of nerve to go long at the close, except that it was below the low of the previous buy day