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

Reading the Tape *PIC*


Good morning,

From reading the tape, we predicted in yesterday's Pivot
Magic Trading Journal, PERSPECTIVE Section:
"Daily tape looks set for a breather candle resting atop
the Historical S/R on Thursday."

Albeit huge, a Spinning Top qualifies as a breather candle,
and it definitely is resting atop the Historical S/R (Daily,
bottom chart). As daytraders, we don't care which way it
goes, as long as it goes, with us aboard! Nice (read:
profitable) day.


Enjoy and be well,


"When you speak of success,
you attract success."
Napoleon Hill


E-mini ES H1
Thursday May 05, 2011

1 = Large white Bull Dragonfly (blue arrow). Opening gap-down, this is surely a Reversal off
the S1/Hystorical S/R (Daily, bottom chart, dotted blue line). However, there is no
immediately preceding trend on the Overnight (etc.) to qualify this as an Anomaly Signal.

1 = All of that was a preamble to permit consideration of this 2-candle 123 Continuation
through the S1. Everything looks good. Not enough juice to enter aggressively and the Bulls

2 = Mid-air reversal (blue arrow) leads to a 2-candle 123 Continuation through the S1.
Moreover, the Continuation sets up a Failed TTT Corollary situation. Volume is up (pink arrow),
and the move, though close to lunchtime, partners with the pull of the Close. Aggressive entry
with initial stop under the S1.

A = Large white candle through the Low. Per PMT stop rules, move the profit-locking stop under
the Low.

B = Late-in-the-Move DVS (pink arrow) blasts a large white candle. Our position is in PMT
Maximum Profit Giveback (MPG) violation, with signs of exhaustion. Mental stop to Giveback
Level/62% Retracement.

C = Minor Price Action Stall tests our nerves [ulcers], but a huge DVS (pink arrow) rockets a
giant white candle through the Close all the way to the Pivot.

The tape now clearly describes exhausted Momentum, hardly enough to push against such a massive
Resistance level. Pivot Scalp exit. +/- 7.50 points

3 = Reversal is too weak to call it a Signal. Lunchtime sideways drift ensues in the green fog
Ambush Zone.

4 = Another Volumeless bounce.

5 = Most painful so far. Failed TTT with absolutely no trading interest/Volume.

6 = Nice reversal signal off the Close. Time is ripe. Boo! Only with an aggressive entry is
there sufficient Price Window to the proven S1/Historical S/R, and there is no trading interest

7 = Volume is finally strong (pink arrow) behind a 2-candle 123 Continuation of the S1.
Aggressive entry is appropriate. The candle travels a long way. At the close of the candle,
consider moving the stop to Free Trade and a tik.

H = Gigantic DVS (pink arrow) dunks Price Action to desperately stretch for a tap on the S2.
As soon as Price Action retracts, Pivot Scalp exit. +/- 5.25 points
If you were either optimistic or slow, after Price Action recoups >2 points, exit.
+/- 3.75 points

EOD Hiccup (plum lines) is a bit early, but traces the classic "V" check mark pattern all the
way back to the S1/Historical S/R (dotted blue line).

(Daily, bottom chart)

Thursday taped a red Spinning Top day candle, which traversed a
considerably larger trading range than anticipated. Yesterday we
called for a breather candle resting atop the Historical S/R. Albeit
huge, a Spinning Top qualifies as a breather candle, and it definitely
is resting atop the Historical S/R. Were it not Unpredictable Friday,
we might anticipate a true breather day.



REMEMBER: Trade the Tape, Not my Prognostics!

=] ;-)>

Thursday's PMT Chart: