First Page of ADX chapter from Wilders 1978 book

Highest 5-Min ADX Final 90 Minutes -- Last 7 Years (1751 Days)

ES - Time of daily highs and lows (updated)

These stats confirm what Linda teaches about Taylor: reversals typically occur in the morning and most days trade from low-to-high or from high-to-low.

As such, they are useful if your trading style is focused on capturing the main theme of the day (they are of less importance if you are a TTF scalper).

The statistics can give you the confidence to stay with a trade, or to get in to a trade midway through the day and play for an afternoon new HoD / LoD.

However, the stats are not the holy grail. They must be put into context, which for me means considering:

• Where are we in this auction (i.e. how many days have we traded high-to-low or low-to-high)
• The strength of the current auction
• Price action vs the Previous Day High (PDH) / PDL and the Open
• Price action vs significant support / resistance areas
• etc etc.

Chart 1: Frequency distribution of High of Day (HoD) and Low of Day (LoD) in each 30-min bar.


Chart 2: Frequency distribution of HoD and LoD in each 30-min bar on High Made First days.


Chart 3: Frequency distribution of HoD and LoD in each 30-min bar on Low Made First days.


Chart 4: Number of 30-min bars between HoD and LoD



The letters are the standard Market Profile characters for each 30-minute bar
i.e.
B = 8:30 - 9:00am CT – the first 30-min bar for ES
C = 9:00 – 9:30am CT
D = 9:30 – 10:00am CT
etc.

(n.b. The letters were the original half-hour time codes at the CBOT)

SRS

links to videos of the joey setup

http://www.screencast.com/t/P7Pdms4kq0
http://www.screencast.com/t/BeSN0Mxkg
http://www.screencast.com/t/jb9Hcprah1k
http://www.screencast.com/t/5UZB0bO36vW

video test

5-Year Yield

5-Year Yield on a third push down after breakout. An A-B-C corrective reaction up from this would be textbook.

SRS

Taylor days – post game analysis

Doing some end of week analysis I was struck by the similarities between the Sell Short Day on Thursday (Dec 4th) and the Buy Day on Nov 21st.

Rather than being classic Taylor days (failed test followed by a swing in the other direction) the coils that formed on these days made them more difficult to read at the time, at least for me.  

(Though the market had clearly failed to get any momentum beyond the previous day's range, in both cases the Opening Price was holding and Value was being built in the direction of prior two days.)

The attached charts show the similarities between these two days and the subtle clues that showed the auction had indeed changed direction (before the breakouts).

Chart1: Sell Short Day (December 4th)


Chart2: Buy Day (November 21st)


n.b.
LMF = Low Made First
HMF = High Made First
OP = Opening Price
VA = Value Area
PDL = Previous Day Low
PDH = Previous Day High

SRS