This forum is for LBR members to discuss LBR concepts.
My initial post to kick things off is a simple 'Taylor Summary' of recent action. This is for the period ended Friday 11-2-07.
I have 2 indicators at the bottom. both are simple.
First just calculates whether the highest or lowest bar of the day came 'first.' The market tends to alternate on this and Linda/Taylor stress the importance on watching highs and lows. This may seem subtle but I have found watching this alteration useful.
The second indicator helps to show 'location'. It is simply the distance back to the 15-min EMA for the morning session. If market is starting with an 'extreme gap' -- it will often head back toward the 15-min EMA at some point -- even if the ultimate direction is in the same direction as the gap.
Taylor also stressed violations of previous day 'high' and 'low'.
Thus in an idealized setting you would look for:
1) 2 consecutive high to low days
2) a 'violation' of the previous day low in the morning session on day 3
3) a start a good distance away from the 15-min EMA.