DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning and a good week,
Pivot Point Ping Pong! Price Action bounced from Pivot Point Level
to Pivot Point Level, presenting us with one nice Bull trade.
The rest of the day skittled sidewise on zero Volume, and our risk-
conservative Pivot Magic Trading Money Management rules kept our
funds safely in the bank.
Enjoy and be well,
E-mini ES H1
Friday February 11, 2011
Morning session opens gap-down below the Pivot, engages with the PL, and hovers.
1 = A 2-candle 123 through the Pivot. Not enough Volume support to warrant an aggressive entry.
By the time entry placement is reached, Price Action is about to enter the green fog. We don't
enter into the green fog without extreme justification.
2 = Reversal off the Close. No Price Window to the Pivot, so our Money Management rules save us
from a SCRATCH later.
3 = A 123 Continuation "S" Signal off the Close. Volume justifies aggressive entry. As Price
Action leaves the green fog Ambush Zone, we are pulled in on a large white candle through the High.
Initial stop advances under the High.
A = Small gap and a large white candle. Normal stop placement (under the low of the candle)
leaves the position in PMT Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.
B = Large white candle impacts with the R1. Per PMT stop rules, move the profit-locking stop under
the low of the candle. In case the R1 holds, use a mental stop for a more efficient exit.
C = Massive DVS (pink arrow) late in the move is a clear exhaustion signal. Elongated top wick
(also an exhaustion symptom) of the large white candle retraces just shy of 2 points. The next
candle will certainly retrace the rest of the 2+ points for an Exit Now!, so why wait.
+/- 5 points
4 = As a Descending Triangle forms (lavender lines), the first Reversal does not prove. Nor does
the second Reversal (blue arrow).
By now, the Volume has gone into lunchtime drift mode, and the Price Action struggles sideways at
Eventually, Price Action wafts to the R2/LT Trend Channel Ceiling (green line). The BBs never do
come back from drinking lunch, and we finally give up, shutting down at 3:00.
(Daily, bottom chart
Friday taped a large white Bull Dragonfly day candle.
Once again, the LT Trend Channel Ceiling (green channel
lines) Resistance held firm.
Nothing visible on the tape to change our expectation of
an upcoming Bear dip deep into Channel. But:
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Friday's PMT Chart: