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TFC Commodity Trading Forum

South of the S3 Extreme Pivot Level *PIC*

BS"D

Good morning,

Right up to pre-lunchtime the Price Action was sideways and untradable.
Just as we were about to lose heart, the Bears dove for a massive plunge
south of the S3 Extreme Pivot Level.

Yes, with us aboard! We scored nicely before the market once again
turned sideways to EOD.

Enjoy and be well,

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

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

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

E-mini ES U1
Wednesday June 15, 2011

Wednesday morning opens gap-down near the S3 and trades promptly back up to test the S2.

1 = Mini-Reversal at the S2 doesn't prove.

2 = Second Reversal at the S2. Volume has dropped off. Again the move doesn't go anywhere.

3 = Doji Sandwich at the S2. Without Volume confirmation, our rules say to hesitate to enter.

4 = Volume is still low and sloppy. This reversal makes it a Head and Shoulders, but the
move does not take off.

5 = Nice 123 kickoff from the Head and Shoulders (= 4). Looks interesting, but the Volume
is way low.

A = Volume jumps to life (pink arrow), and we are pulled in on the right shoulder breakout.
Move the initial stop above the MA.

NOTE: Even though the candles look tiny, the horizontal
grid is 2 points per line. ABS is bloated today, so
consider expanding stop, exit, and MPG spacings.

B = Giant red candle rips easily through the S3. Per PMT stop rules, move the profit-locking
stop above the S3.

C = Volume is decreasing, but still strong, as this red candle puts our position in violation
of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Place mental stop above the high
of the candle.

D = Monster Black Volume Bar of Death (pink arrow) Doji. Move the Mental profit-locking stop
above the high of the candle. If the next candle is white, Exit Now! conditions prevail.

E = Giant red candle puts our position in serious MPG violation. Mental stop at Giveback Level.

F = Twin Towers DVS pattern (pink arrow). Another large red candle puts our position back into
MPG violation. Mental stop at Giveback Level.

The Twin Towers indicates a stall/sag/retracement on the next candle, so be prepared to execute
the Mental stop. Especially as lunchtime drift is overdue.

The next (white) candle dips and retraces >2.50 points (allowance for expanded ABS). Exit Now!
+/- 11 points

Now that was worth a bit of nail chewing!!!

As the BBs head to lunch, drops off, but Volume is still relatively high (relative to the last
couple days Volume levels). Price Action now turns sideways, twining the MA to EOD.

5 = Yes, this is a "P" at the MA, which might be called a PMT "S" Signal. However, even in
light of the Volume burst (pink arrow), it is too risky to trade so far beyond the S3 Extreme,
especially on such a "creative" Signal.

PERSPECTIVE
(Daily, bottom chart)

As the Bulls fail to re-enter the LT Trend Channel (lavender
channel lines), the Bears take the turnover, and Price Action
plunges, taping a giant red day candle.

Since Wednesday re-achieved the preceding low of the current
retracement, the usual breather day following a monster move
may not be necessary. The Bears may just press the attack, so
prepare for action on Thursday.

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Wednesday's PMT Chart: