I introduce this concept of swing trading strategy (open and close positions on different days). This strategy unveiled in the book "The Taylor Trading Technique", in the 50's. Taylor identified three days. Buy
Day: Day
tendencySell Day: outperforms previous day's highs. No go ahead and sell. Short Sell
Day: Get short and close the next day.
perfect, but how to apply is the question as many other strategies. His contribution to trading is that it allows a frame of reference for our input when we are in the next part of the cycle.
Did you identify it?, Because between euphoria and doubts. In most cases, collecting the opinion of an expert, a day on the market trend is followed by a day of consolidation, if the day is strong trend of consolidation will be slightly higher.
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