BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning and a good week,

Got a couple of bites out of Pivot Trading Friday's Doji day.
The old LT Trend Channel Floor (Daily, bottom chart, green
channel lines) was tested, but held.

Thinking "Bear" for Monday.

Enjoy and be well,

******************************

E-mini ES H1
Friday April 01, 2011

1 = After opening gap-up, the Price Action dives, taping a Double Bottom at the R2. Volume
is high enough (pink arrow) that we enter aggressively above the R2. At the close of the
candle, move the stop to Free Trade.

A = Late-in-the-Move DVS (pink arrow) is an exhaustion indicator. When the white inverted
(Bear) Dragonfly spikes the R3 and retracts, Pivot Scalp exit. +/- 2.25 points

2 = Reversal at the R3 doesn't prove.

3 = A Reversal at the R3 Extreme requires lots of Volume for us to enter. The volume does
perk up a bit, but the resulting 2 candles are particularly weak. Nothing here.

Just as lunchtime starts, Price Action actually inches up to tap on the old LT Trend Channel
Floor (Daily, bottom chart, green channel lines).

4 = A Third Time Through (TTT) completes a series of lower highs (lavender line). Finally,
the attempt completes successfully with a 123 (blue arrow).

B = We are pulled in as Volume jumps to life (pink arrow). As the candle closes, move the
stop to Free Trade.

C = Large red candle slams into the R2 Support. To avoid Pivot Magic Trading Maximum
Profit Giveback (MPG) violation, place a mental stop at Giveback Level.

D = If you freaked during the S-trap 123 and exited, you could re enter on the DVS-based
(pink arrow) breakout candle. Otherwise, add contracts. A second close below the R2
warrants moving the stop safely above the R2.

The elongated bottom wick is not very encouraging.

E = Very Late-in-the-Move DVS (pink arrow) reads, "exhausted Momentum".

A giant red candle rips through the high and slams to a halt at the (previously unproven) R1
Support. Per PMT stop rules, move the profit-locking stop above the High. In light of the
DVS warning it is prudent to use a mental stop.

F = Black Volume Bar of Death Doji (pink arrow). Personally, I'd not wait, but if you do,
our Money Management rules force you to exit the instant the next candle shows white.
+/- 5 points

5 =The PMT entry clock has wound down, AND the Price Window to the R2 is prohibitive
anyhow. Sorry no Reversal entry.

EOD closes at the R2, for a Doji day.

PERSPECTIVE
(Daily, bottom chart)

Friday's white Bear Dragonfly day candle stretched to tap
on the old LT Trend Channel Floor (Daily, bottom chart,
green channel lines), but Price Action promptly retreats
without re entering the channel.

Two white day candles with elongated top wicks sandwiching
a vague red candle imply a Bear plunge on Monday.

Let's see!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Pivot Point Daytrading Course

Friday's PMT Chart: