DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Thursday is Rollover day!
Use Wednesday's EOD data from the new front month (June)
for calculation of Thursday's Pivot Points.
As we warned in yesterday's PMTJournal, "With a Lower High
than Monday, Tuesday's large white day candle is not necessarily a
sign that the Failed TTT Corollary move has initiated . . ."
A small-range bounce-slide breather day was what we got, so
the TTT assault has neither failed nor succeeded. We did garner
a few points out of the morning activity before the day turned
sideways, ping ponging inside the Pivot-Close channel.
Enjoy and be well,
E-mini ES H1
Wednesday March 09, 2011
1 = Morning session opens with an Anomaly (Overnight, bottom left chart) Double Bottom at the Pivot.
Breaking through on a 123 with strong Volume support, the large white candle pulls us in. Initial
stop advances under the Pivot for well-controlled At Risk.
A = Breakaway gap (it turns out to be and exhaustion gap), and a large white candle rips through the
Close. Per PMT stop rules, move the profit-locking stop under the Close.
2 = If we weren't astute enough to exit on the first, somewhat wispy, Reversal (+/- 2.75 points), we
got taken out at our stop. +/- 1.50 points
As inviting as it is, our risk-conservative Money Management rules preclude entry into a small Price
Window. Remember, the Pivot is always considered proven.
3 = The Volume surge behind this 2-candle 123 permits us to enter aggressively. At the close of the
candle we move the stop above the Mid for instant locked-in profit. Yay!
B = Large red inverted (Bull") Dragonfly. A Late-in-the-Move DVS (pink arrow) suggests Momentum
failure, as does the long bottom wick. The position is in Pivot Magic Trading Maximum Profit Giveback
violation as well. Mental stop at Giveback Level.
NOTE: The bottom wick has already retraced 1 point, and our
Money Management rules say to Exit Now! if >2 points are
retraced. Even though the mental stop is at Giveback Level,
there is no excuse for giving it all back!
C = The first minute of Price Action this Doji almost recouped the rest of 2 points, but we remained safe.
An exhaustion gap and a giant Spinning Top. This is an ideal opportunity to use my convention of placing
the stop in the gap. Where, of course, we are immediately taken out. +/-3.25 points
Mid-air Reversal and the pull of the Pivot/Close make for a lively, but untradable, climb all the way back
to the Close.
4 = The Close is proven, so the Price Window for this high-Volume 123 is not PMT-acceptable.
NOTE: With the Pivot and Close both proven, and only a small
Price Window in between, we already know that we may only trade
above the Close or below the Pivot. The balance of the day,
however, only trades in the Pivot-Close channel, leaving us on
D = If you haven't already shut down in frustration, this 2:30 Bull bounce off the Pivot makes it a wrap.
The last 20 minutes of the day the BBs offloaded positions, and the day closes vaguely bearish at the Mid.
(Daily, bottom chart)
A small, red, Spinning Top breather, day candle, with a lower
high than the previous two days' candles, suggests the the BBs
are preparing for the final thrust of a TTT assault on the LT
Trend Channel Floor.
Don't get married to this interpretation. The TTT may still
fail, thus setting the stage for a Failed TTT Corollary move
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Wednesday's PMT Chart: