Tuesday, November 29, 2016

November 28- Taylor Trading Sell Short Day in EMini S&P Futures

The Taylor Trading Technique views market moves as a series of reactions to what the market has done recently. Knowing this help us to anticipate what a market is likely to do, based on what it did in the previous session.

For the EMini S&P futures, Friday was a breakout buy day. On Friday it opened near the session low, rallied above the previous session high and continued higher, closing near the top of the daily range.

In reaction to this, we anticipated a Taylor Trading Sell Short day for Monday. For a TTT Sell Short day we look for the market to open near the session high, (possibly) make a failed attempt to rally above the previous day high and then proceed to sell off over the course of the session, finally closing near the daily low.

For a standard TTT Sell Short day today, we would watch the Friday high of 2211.75 as the reference price. However, I often view the Sunday night trade as a session unto itself, as it occurs after the longest weekly break between sessions and it often trades distinctly from Friday’s action

It was for this reason ( Sunday as a separate trading session) that when we would write this morning’s Trade Recommendation to my exclusive subscribers where I suggested we use the overnight high (2208.50) as a lower reference price for the Sell Short day. If the market was unable to reach Friday’s high, the high from Sunday night could be a good reference price level for deciding whether we could look for a Sell Short day / failed rally trade setup.


No comments:

Post a Comment