Good morning and a good week,
Friday taped a disappointing Doji breather day. We did
manage to be aboard for most of the down swing, but got
left on the sidelines, as Price Action rebounded north
back to where the morning opened.
As usual, Friday was indeed full of traps.
Enjoy and be well,
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
"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."
E-mini ES Z1
Friday November 04, 2011
1 = Morning session opens gap-down with an Anomaly Double Top/DT Multi-top
off the Pivot. Bear Volume is strong, possibly permitting aggressive entry after the
candle travels >2 points.
A = Giant red candle through the Mid. DVS (pink arrow) suggests a stall. Move the
profit-locking stop above the Mid.
B = Black Volume Bar of Death (pink arrow) Doji. Prepare to exit if the next candle
C = It's not, but Price Action continues to stall, and we stay at alert.
NOTE: ABS is bloated today, even on the small candles.
To avoid constantly being stopped out at every swing,
expand Stop, Exit, and Maximum Profit Giveback (MPG)
D = Large red candle, sort of a Spinning Top. Normal stop, above the high, would
leave the position in MPG violation. Mental stop at Giveback Level.
E = DVS (pink arrow, Twin Towers?) blasts a giant red candle to virtually tap on the
S1. Close enough on a DVS exhaustion stretch! Pivot Scalp exit as Price Action
retracts. +/- 8.75 points
2 = A 2-bar through the S1 doesn't take off.
3 & 4 = Neither do either the Doji Sandwich nor the 123 Dragonfly kickoff.
Lunchtime is upon us, and Price Action starts to drift sideways.
5 = A 2-bar Reversal "P" Signal at the MA qualifies as a PMT "S" Signal. By the time
Volume perks up and the move finally takes off (blue arrow) it is too far from this
permissive signal reading to enter. We, of course now witness the Bull move of the
day from the sidelines.
6 = Doji Sandwich at the Pivot. No Volume. Fails to take off.
7 = Another failed attempt to pull free north of the Pivot fails. Price Action then
tries to head south, and fails in that as well.
8 = This 123 is a failed Third Time Through (TTT), which adds the impetus of the
Pivot Magic Trading Failed TTT Corollary rule to the strength of the signal.
F = It would have been nice to enter aggressively on a TTT Corollary, but the Volume
is just too disinterested.
G = Volume comes to life (pink arrow), and we are pulled in on a large red candle
through the Mid. Advance the stop above the Mid/Free Trade plus.
Arrrgggghhh! And there we get stopped out AND SHUT DOWN OUR MONITORS!!!
Price Action Swings up and down, finally closing EOD just above the Pivot for a Doji
(Daily, bottom right chart)
Friday taped a small red Bull Dragonfly day candle.
It was a classic breather candle that retraced the
entire body of the previous day's large white
The tape now displays a vague bearish inclination
to retest the LT SW Channel Ceiling (lavender line),
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Friday's PMT Chart: