DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning and a good week,
Good morning and a good week,
Friday taped a raging battle at each of the Pivot Points all the
way down from the Close to the S2. We took a couple of nice
bites out of the run, and are feeling relieved after a long wait.
Just wish we could devise a safe way to trade the EOD Hiccup!
Tape is confusing. Be extra alert on Monday.
Enjoy and be well,
E-mini ES H1
Friday March 04, 2011
Friday opens at the Close and dives to test the Pivot support.
1 = It took two tries, but this double 123 got our attention.
A = Volume soars (pink arrow), and we are pulled in on a monster red candle.
By the close of the candle, our position is already in violation of PMT Maximum Profit Giveback
(MPG) rules. Mental stop at Giveback Level, with profits securely locked in.
B = Large red candle through the S1. Normally this is not sufficient PL penetration to permit
us to move the stop above the PL. However, the elongated bottom wick reads, "stall", and the
Volume histograph displays a bold Twin Towers (pink arrow), indicating a stall/retest.
A >2-point retracement (including the bottom wick) is likely. Move the profit-locking stop above
the S1. And there, as anticipated, we are taken out on a large Doji S-trap. +/- 3.25 points
2 = Lunchtime Volume behind both the 123 above, and the 123 below (blue arrow) the S1. Nothing
to interest us.
C = Hello! With Price Action below the MA, when the Volume booms, we are pulled in. Stop
advances above the Low.
D = A just barely large, red candle. Since it is lunchtime, be aggressive. Move the
profit-locking stop above the high of the candle.
E = S-trap stall has us alert, but a DVS (pink arrow) blasts a giant red candle to slam against
the S2. Position is in MPG violation. Mental stop moves to Giveback Level. We're double glad
to have a mental stop for quick exit in case the S2 Support holds and Price Action rebounds.
F = DVS (unmarked) generates a large red inverted (Bull) Dragonfly. Both the candle and the
Volume warn that the Momentum is failing. Normal stop placement leaves the position in MPG
violation. Mental stop at Giveback Level. With >1 point already retraced, prepare to exit early.
G = The third in a series of diminishing DVSs (lavender line) drives another large red inverted
(Bull) Dragonfly. Per PMT stop rules, move the profit-locking stop above the high of the candle.
Since the tail has already retraced >1 point, prefer to use a mental stop. Be prepared!
Next candle (white Bull Dragonfly mid-air reversal) completes the retracement >2 points and we
exit briskly. +/-7.50 points
Later than usual, lunchtime sideways drift truly sets in. Price Action skittles along the
underside of the S2 till late afternoon.
EOD Hiccup (plum lines) is violent, taping a classic "V" checkmark pattern, as Price Action snaps
back to the S1.
(Daily, bottom chart)
Friday, always unpredictable, taped a large red Bull Dragonfly
day candle. The EOD Hiccup (tail of the candle) left the tape
very hard to read. Was that a recovery or just a pullback for a
running start at a charge at the LT Trend Channel Floor (green
channel lines) on Monday?
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Friday's PMT Chart: