Identify a market bottom and initiate a long position.
A failure to hold the early high indicates the beginning of a markdown phase, leading into the next Buy Day. Key Analytical Concepts The Taylor Trading Technique
A recovery back above the previous day's low suggests a rejection of lower prices and a potential rally. Day 2: Sell Day Objective: Exit long positions for a profit. Identify a market bottom and initiate a long position
Traders look for the market to test or "violate" the previous day's low. Day 2: Sell Day Objective: Exit long positions for a profit
The market often opens with an upward gap or makes an early high before reversing sharply.
Anticipate a decline and initiate a short position.
Traders look to sell into the strength of the rally at "objective price levels" near the prior day's high. Day 3: Sell Short Day