Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

E-mini Price Swings *PIC*



Good morning,

In yesterday's Daily Pivot Magic Trading Journal, PERSPECTIVE:
section, we observed,
" . . . [Thursday] May well be another breather day, but stay alert!"

Got that right! Both parts!

It was indeed a breather day, but alert Traders of the Tape scored a
few points from the day's Price Action swings.


Enjoy and be well,


E-mini ES H1
Thursday February 03, 2011

1 = Morning opens with an Anomaly (Overnight, bottom left chart) off the Pivot/Close. The move promptly
stalls at the S1.

2 = A 123 Second Chance at the S1.

A = Volume booms (pink arrow), and we are pulled in below the S1. This candle also makes it a 2-candle
123, so enter with multiple contracts.

At the close of the giant red candle, jump the stop down, above the S2, for instant locked-in profit.


B = Twin Towers DVS (pink arrow) indicates that the next candle will be a stall/sag/reversal. When the
large red candle spikes the S3 and retracts, Pivot Scalp exit. +/- 4 points

3 = The large white Bull Dragonfly through the S3 calls for a Reversal entry.

C = We are pulled in on a healthy white Bull Dragonfly. Initial stop advances under the low of the candle.

The next (red) candle retraces >62% and we SCRATCH! Booo!!!

4 = Intriguing Double Top off the S2. The Price Window to the proven S3 is too small to enter however.
Once again we are saved by our risk-conservative Money Management rules.

5 = A 123 Continuation through the S2. The proven Close cuts the Price Window short. We pass.

Lunchtime sideways drift runs along the underside of the Close well into the late afternoon.

6 = Just in time for the last PMT trade, the tape presents a somewhat sludgy 123 off the Close.

D = Volume comes to life, and a large white candle bursts through the Pivot, pulling us in. Initial stop
advances under the Pivot.

E = DVS (pink arrow) pumps a large white Spinning Top through the Mid. We are warned by this candle that
Momentum will soon fail. Per PMT stop rules, move the profit-locking stop under the Mid.

F = Large white candle overruns the R1. Per our stop rules, move the profit-locking stop under the R1.

NOTE: Although this is a 2-candle 123, the accompanying Twin Towers
DVS pattern (a stall/sag/retest indicator) discourages adding contracts.

G = Stall it is. Black Volume Bar of Death Doji (pink arrow). Our rules say to exit on red. In light
of the Twin Towers, it seems prudent to immediately change to a mental stop in preparation.

We exit as the next candle (it closed white) show 2 tiks of red. Got a bit of positive slippage, at
least. +/- 1.75 points

EOD Hiccup (plum lines) is right on time, with a classic (albeit small) "V" checkmark pattern. The day
closes atop the R1.

(Daily, bottom right chart)

Except for a brief, but violent, stab into the LT Trend Channel (green channel lines),
Thursday was another breather day. The tape suggests

that the BBs would like to dip deeper into the channel on Friday.



REMEMBER: Trade the Tape, Not my Prognostics!

=] ;-)>

Thursday's PMT Chart: