Tuesday's e-mini taped another small-range Surge-Slide day trade maneuver,
making trading room for the BBs to scalp. We successfully read their plan,
and scored pretty well ourselves. Even got notified early on (tap on R1
at 13:05) of the opportunity to take the afternoon off. Great!
Enjoy and be well,
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Pivot Magic Trading
"Any time you don't know what
is happening, get out!"
E-mini ES H2
Tuesday February 07, 2012
Morning session opens slightly gap-down and heads to test the S1 support.
1 = Powerful 123 Continuation at the S1.
A = We are pulled in on this red inverted (Bull) Dragonfly. Initial stop advances above
the S1, reducing At Risk. The elongated bottom wick worries us some.
The next candle, a white Bull Dragonfly, is a Reversal/Exit Now! Signal. SCRATCH!!!
At least we got a drop of positive slippage on the next giant red candle.
2 = A 2-bar off the S2. The S1 Resistance is unproven, so the Price Window is wide open
to the Pivot.
B = Small breakaway gap, and we are pulled in on a large red candle slightly through the
S1. Initial stop advances under the Low.
C = Large white candle. Per PMT stop rules, move the profit-locking stop under the S1.
The tape displays a 123 "S" entry Signal atop the S1, so we add contracts.
D = A single-candle S-trap resolves with a large white candle. Per our stop rules, move
the profit-locking stop under the low of the candle.
E = S-trap continues with a Doji, but a large white candle breaks free, through the Mid,
spiking the Pivot and retracting.
Beginning PMTers call that an Exit Now! +/- 2.75 points
Advanced Readers of the Tape, noting that the Volume is powerful, anticipate a hi-odds
closing of the opening gap. The penetration of the Mid affords a very nearby/low-risk
stop opportunity, making the R:R quite favorable. They hold tight.
F = Those who held tight are rewarded with an opportunity to both add contracts (2-candle
123) and to tighten their stop under the Pivot. Those now on the sidelines DO NOT
re-enter into the green fog Ambush Zone.
G = A large white candle spikes the Close and retracts slightly. A Pivot Scalp Exit is
signaled. Not wanting to hang out in the Ambush Zone, exit briskly. Take your money
run! +/- 7.50 points
3 = The move actually continues, with a 2-candle 123. DVS (pink arrow) Volume permits
aggressive entry. At the close of the candle, move the stop under the High for
well-controlled At Risk.
H = The sixth white candle in a row (a Spinning Top, which is a very weak candle) spikes
the R1 and retracts. Pivot Scalp Exit. +/- 1 point
4 = Extremely weak (Dojis and tiny Spinning Tops) 123 of the R1.
* Volume is down considerably.
* Albeit unproven, the R2 suggests only a small
* Lunchtime is nigh upon us.
That's it for the Surge portion of the day. Now Price Action turns sideways atop the R1
and Slides to EOD close at the R2.
BTW, the 13:05 tap on the R2 makes the Price Window in the R-R2 channel suspect, so when
the R1 defenses held strong under massive attack (13:35) we knew to shut down our
(Daily, bottom chart)
Tuesday taped yet another tiny white breather day candle.
Price Action continues to hover. Still expecting the
Bears to attempt a valiant foray this week.
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Tuesday's PMT Chart: