BS"D
Good morning,
Fair amount of tradable range as Tuesday taped a large-range
Slide-Plunge, dipping through the Floor of the new LT SW
Channel (Daily, bottom chart, dotted purple line).
We got a couple of decent bites out of the runs down.
Enjoy and be well,
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
******************************
Pivot Magic Trading
First rule:
"Any time you don't know what
is happening, get out!"
******************************
E-mini ES H2
Tuesday December 13, 2011
Tuesday morning opens gap-up, continues to trade through the R1 Resistance to a mid-air
Reversal, and heads back down to test the R1 Support.
1 = Aggressively enter on high-Volume 123 through the R1.
A = If you missed the aggressive entry, enter on this red candle.
B = DVS (pink arrow) and a large red candle puts our position in Pivot Magic Trading
Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.
Although some might exit here (>2 points retraced counting the bottom wick of = D,
+/- 2 points), the inability of the strong Bull Volume to generate a reasonable Price
Action response suggests that we apply our new Pull-back Lock-in S-trap Evasion Maneuver.
C = Waiting and giving the S-trap room to work out pays off. Move the profit-locking
stop above the high of this candle.
NOTE: ABS is a bit bloated today. To avoid getting
stopped out at every Price Action swing, expand the
exit, stop, and MPG placements.
D = DVS (pink arrow), suggesting Momentum exhaustion, generates a large red candle.
Position is in MPG violation. Mental stop at Giveback Level.
Trigger the exit as Price Action retraces 2.50 points (including bottom wick on = D).
+/- 4.75 points
Slight bounce, and lunchtime sideways drift sets in midway between the Pivot and R1.
2 = A small 2-bar off the R1. Volume perks up (pink arrow), and we enter as the 3rd candle
retraces below 62% of the 1st, white, candle. At the close of the candle, move the stop
above the MA, for immediately locked in profits.
E = Another very large red candle/failed test of MA puts our position in MPG violation.
Mental stop at Giveback Level.
F = Late-in-the-Move DVS (pink arrow) generates a large red Spinning Top (the top wick gave
us a start!). That's a significant pair of exhaustion warning symptoms. Position is in MPG
violation. Mental stop to Giveback Level, but prepare to exit if >62% of = F is retraced.
No need to give it all back!
Turns out to be a very large S-trap, but no matter, we exit. +/- 5 points
3 = Massive 123 at the Pivot/Close.
G = We are pulled in as a giant red Marubozu (full-bodied candle without wicks) blasts
through and exits the green fog. Remember, always be wary of these sumo candles; will the
troops rally into the hole they punch? DVS (pink arrow) indicates likely exhaustion and
casts further doubt on the efficacy of our position. Thus, at the close of the candle, move
the stop to Free Trade and a couple of tiks.
Next candle (white Spinning Top) bounces off the new LT SW Channel Floor (dotted purple line)
and retraces >2.25 points. We exit/SCRATCH!!!
4 = DT Multi-top off the Pivot/Close. Price Window to the proven Channel Floor is too small
for entry.
H = The reversal breaks through the dotted purple line with a 2-candle 123 completing on a
Bear Dragonfly. What a combo! We enter aggressively, with plans to trade aggressively in
case the S1 Support holds, or Price Action returns to retest the dotted purple line.
H = Healthy, but not overly large, red Bear Dragonfly. In line with our aggressive stance,
call this "large enough", and move the profit-locking stop to Free Trade and a tik.
J = DVS (pink arrow). Late in the move, this warns of failing Momentum. The large red candle
rips through the S1, permitting us to advance the profit-locking stop above the S1. The long
bottom wick adds to our exhaustion worries.
K = Whoa! Gigantic red candle puts our position way deep into MPG violation. Mental stop at
Giveback Level.
The next (white Doji) candle spikes, and retracts > 2.25 points. That's a PMT Exit Now! Signal.
Glad for the mental stop!!! +/- 7.75 points
EOD Hiccup is on time, and tapes the classic "V" check mark pattern (plum lines). Price Action
rebounds for a failed retest to the S1 Support-turned-Resistance at EOD.
PERSPECTIVE
(Daily, bottom chart)
Tuesday taped a relatively large, red, Spinning Top day
candle piercing the new LT SW Trend Channel Floor
(dotted purple line). The Bears not really overrun the
defenses there. For all the bravado, net, this candle only
amounts to a breather.
Will the dotted purple line Support exert on Wednesday?
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Tuesday's PMT Chart:
