Taylor Trading Technique

The Taylor Trading Technique was developed by George Douglass Taylor for his personal trading. In the early 1950’s, he wrote a book on this method – called “The Taylor Trading Technique”.

The method is the basis of trading for two well known traders: Adam Grimes and Linda Bradford Raschke.

Grimes says: “……..this is one of the most important concepts I know and it provides the foundation for my approach to each trading day.” Read his article here.

Grimes explains : “Rather than getting lost in the details of his system, I try focus on what I believe is the driving principle: That a trend day in a market will usually be followed by a consolidation day, and, if the trend day was strong, the extreme of the trend (high for uptrend, low for downtrend) will usually be slightly exceeded the following day.”

Linda has written a number of articles on Taylor. Do a google search on “Raschke on taylor trading” to get a long list of links.

My Notes:

Day and Swing traders should have a feel of the short term rhythm of the market. The Taylor method explains one way to get that market feel. Whatever method you eventually use, you should be aware of Taylor’s concepts.