Monday gave us a few chances to nibble at the e-mini
Surge to nowhere portion of the day's Surge-Slide
A new LT SW Channel (Daily, bottom chart, green channel
lines) has formed, which might make trading interesting
on Tuesday as well.
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
Monday 27 February 2012
1 = Monday morning opens gap-down nearly at the S3, bounces through, and tapes a strong
2-bar "P" Reversal Signal.
A = Small breakaway gap, and we are pulled in on a white candle.
B = Don't much like the elongated top wick. We move our profit-locking stop under the low
of the large white inverted (Bear) Dragonfly candle.
C = Another small gap (might mean exhaustion), and a healthy white candle runs up to the S2.
Following the inverted Dragonfly and possible exhaustion gap, this looks like a good place
to apply my convention. Place the profit-locking stop in the gap.
D = Price Action 2-candle gap-123s through the S2, and then bounces on another 2-candle 123.
This second white candle closing above the S2 invites us, per PMT stop rules, to move the
profit-locking stop under the S2 (or even into the gap).
NOTE: Were it not for all the exhaustion gaps and the
elongated top wick, we would add contracts. Six white
candles in a row for a thin line trend seals the deal.
E = Sadly, but not surprisingly after eight white candles in a row, the tape offers us a
Reversal and we exit. +/- 3.75 points (Good slippage as the next candle reverses again.)
2 = DVS (pink arrow) blasts a massive 123 through the S1, pulling us in aggressively. As
the close of the candle enters the green fog, move the profit-locking stop to Free Trade
and a tik.
F = The tail of this inverted (Bear) white Dragonfly spikes the Close and retracts. That
signals a Pivot Scalp Exit Now! +/- 1.50 points
3 = A 2-candle 123 through the Pivot is interesting.
G = Volume jumps to life, and we are pulled in on a white candle through the Mid. Advance
the initial stop under the Mid.
H = DVS (pink arrow, making it a Late-in-the-Move Twin Towers pair stall indicator) pumps a
giant white candle through the R1. Momentum is likely exhausted, so, since the normal stop
placement under R1 corresponds with Maximum Profit Giveback Level, use of a mental stop
The next (red candle) retraces >62% and we go flat. +/- 1.50 points
So much for the Surge portion of the day!
Lunchtime sideways drift scoots aimlessly atop the R1 for hours and hours.
4 = A flick north reverses off the R2. Volume is vaguely up (pink arrow), but the Price
Window to the thoroughly proven R1 is too small to consider.
The day closes back atop the R1.
(Daily, bottom chart)
Monday's white Bull Dragonfly day candle did present
us some tradable range. Furthermore, Price Action
seems to have described another LT SW Channel (green
channel lines) on the stair-stepping updraft trend.
The Bears now have a much more attainable target for
the upcoming plummet.
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Monday's PMT Chart: