BS"D
Good morning and a good week,
Friday was insane!
The ABS (Average Bar Size) was extremely bloated and the Price
Action conformed wonderfully to our Pivot Point Trading methods.
PMT Money Management rules turned even our wrong steps into
profits. +/-65.50 points sure made up for lots of sitting and
waiting days!!!
Enjoy and be well,
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
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"Don't gamble; take all your savings and buy some
good stock and hold it till it goes up, then sell it.
If it don't go up, don't buy it."
Will Rogers
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E-mini ES U1
Friday August 05, 2011
1 = Nice! Morning session opens with a 2-candle 123 breakout from the pre-open Anomaly Reversal
(Overnight, bottom left chart). We enter below the Pivot. At the close of the candle move the
stop to Free Trade and a tik. Even nicer!
A = Large red candle puts us in violation of Pivot Magic Trading Maximum Profit Giveback (MPG)
rules. Mental stop at Giveback Level.
B = DVS (pink arrow) quite likely exhausts Momentum blasting a gigantic red candle through the
Pivot and Low. The position is once again in MPG violation. Mental stop at Giveback level.
NOTE A: Today's ABS is extremely engorged. (As the day progresses
we note that ABS is >5 points), so, to avoid constantly being stopped
out, scary as it may be, MPG, stop, and exit placements need to be
greatly expanded.
C = Here is a perfect case to examine NOTE A. Do we exit on the 5 point retracement tail of
the candle (+/-18.75 points, positive slippage on the exit), or do we move the stop down to
the new MPG, exiting as the next candle tapes a mid-air Reversal (+/-22.75 points)?
Twin Towers DVS (pink arrow), indicating a stall/sag is next, suggests the former, more
risk-conservative choice.
NOTE B: It is obvious that every candle (or even minute) is
potentially either/both ripe with profit and/or rife with danger.
It is imperative to read the tape closely, paying close attention
to the signs, and to take an aggressive stance even while letting
profits run. That's a tall order!
2 = Red Bear Dragonfly Reversal at the Close.
D = We are pulled in as the Price Action exits the fog.
Large though it is, relative to today's ABS the next candle is only an average-sized white
Spinning Top S-stall.
E = Red candle through the Low. Per our stop rules, move the profit-locking stop above
the Low.
F = Average-sized (for today) red inverted (Bull) Dragonfly converts to a mid-air Reversal.
Exit Now! (The MA has not been sufficiently tested to rely on our New S-Trap Pull-back
Lock-in Evasion Maneuver in such a volatile environment. Too bad.) +/- 5.25 points
NOTE C: Even abortive moves are highly profitable when the
ABS is raging!
3 = Aggressive entry on this "P" Reversal off the MA (which qualifies as a PMT "S" Reversal
entry signal).
G = Even though this 4.5-pointer is 3.5 points and
that is just too painful. Exit Now! +/-11.75 points
See, even a scratch is nicely profitable when the market is surging.
6 = A healthy 123 "S" continuation off the S1.
P = There is so much profit in the market today that no one wants to break for lunch.
Volume (pink arrow) strongly confirms, and we are pulled in on a large white candle
through the Low. Advance the stop under the Low.
Q = Hah! This time the bloated ABS went against us. We are stopped out early in the move,
with only +/-4.25 points Not bad profit for a losing trade. LOL!
7 = A 2-bar off the Pivot. The "small" Price Window is "only" around 8 points, but that
makes it tradable. The BBs, however, have finally gone out to drink lunch and celebrate
their profits, so we take a break too.
8 = Just as the PMT entry clock winds down, a 123 above the Close combines with a 123 below
the PL for a self-confirming pair. Not enough trading interest to take the risk.
R = Wrong!?! Volume perks, and those of us that are greedy are pulled in on a large red
candle. At the close of the candle, move the stop to Free trade and a point.
There we get stopped out. Notice that when the ABS is raging, good Money Management makes
even a greedy entry with an instant SCRATCH pay off.
The EOD closes back at the Close, with everybody (at least we are) happy!
PERSPECTIVE
(Daily, bottom right chart)
Friday taped the largest Doji day candle I remember seeing.
The range was enormous even though in the end all that
resulted was a Price Action breather.
The markets are very scary, but also potentially very profitable.
Monday is likely to just a wild. Take an aggressive trading
stance, and pay close mind to our PMT Money Management rules.
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Friday's PMT Chart:
