What an artistic display of the market makers creating trading
room in which to cleverly co-ordinate and orchestrate trades
(money) on a sleepy Doji Wednesday!
We took a couple of bites, SCRATCHED a couple of SCRATCHES,
and got some ulcers, but we enjoyed trench scrapping in the
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 Z2
Wednesday 05 December 2012
From the open, Price Action tapes a sine wave entwining the Pivot/Close. The BBs are
maneuvering for room, writhing this way and that to establish running room/preceding
trend for a bounce.
1 = An almost mandatory Pivot retest, tapes a 123 into the green fog.
A = We enter below the fog. Initial stop above the close.
B = Flick retest kickoff red Bear Dragonfly/Failed test of MA. Volume is rather low.
Following the implications of the healthy red Bear Dragonfly, instead of only slightly
tightening the stop, above the MA, consider jumping it to Free Trade.
C = Sudden, and welcome, DVS (pink arrow) plunges a giant red candle through the Low,
nudging through the S1.
Feeling nervous, "Did the DVS exhaust the Momentum?" Searching vainly for a way to
interpret the rule to count this as a full penetration of the S1, and to move the
profit-locking stop above the S1. On the other hand, our Maximum Profit Giveback
(MPG) rules do come in handy. Stop above the Low leaves the position in MPG violation.
Mental stop at Giveback Level, secondarily gives us early exit flexibility by not
requiring Cancel-Replace interface time. Nice.
D = S1 Support-turned-Resistance holds rock hard. With almost no Volume required to
continue the Momentum against flagging Bull defenses, Price Action tapes a massive red
candle. If you were quick, you might have added contracts, as this candle breaks free
with a 123. The position is in MPG violation. Mental stop at Giveback Level.
2 = When Price Action dives south, but leaves behind the tail and of a large white Bull
Dragonfly that together recoup >2 points. Exit immediately.
+/- 4 points
The move, however, has a hard time pushing Price Action back through the S1 Resistance.
Finally, a 123 off the topside (blue arrow) of the S1. Pivot ahead! A PMT Pivot Scalp
E = Volume (pink arrow) supports a breakaway gap and an oddly inverted white Bear
Dragonfly. Advance the initial stop under the low of the candle/in the gap?
F = Late-in-the-Move DVS/Twin Towers pattern (pink arrow, stall/sag indicator) blasts
a huge white candle through the Close like butter, piercing the Pivot, but stopping
cold. Since it is lunchtime, we (wrongly/pre-emptively?) elect to call it a Pivot Scalp
Exit Signal. +/- 3.50 points
3 = Interesting 123 and kickoff from the Pivot, through the Mid.
H = Hello! Volume truly comes to life (pink arrow), and we somewhat daringly might enter
on this large white candle. Alas, once again we immediately receive a Pivot Scalp Exit
Signal, as the candle stretches to tap on the R1 and retract. +/- 1.50 points
4 = Massive Volume continues, and those of us intent on chasing the trend might ignore
the lunchtime clock and enter aggressively above the R1 on this 2-candle 123.
J = Extra large white inverted (Bear) Dragonfly, tail stretch high on Late-in-the-Move
DVS (pink arrow), screams, "End of move!" Briskly get that profit-locking stop under
the High. Oops! SCRATCH!
5 = Once again, Volume (pink arrow) comes to life, confirming a nice 2-bar off the R1.
If you didn't learn your lunchtime clock edginess lesson from = 4, aggressively enter,
with stop advancing under the High, just shy of Free Trade.
K = Two timid white candles combine to permit us to move the stop to Free Trade and a
tik. SCRATCH! on red.
At last, the BBs return to drinking their lunches in earnest, and the market drifts
dully sideways atop the R1.
Almost with a sense of let's get this over with, EOD Hiccup (plum "V" lines) comes
early, with just enough force to drive trading back to the open.
What an artistic display of the market makers creating trades
on a sleepy Doji Wednesday!
(Daily, bottom chart)
Wednesday's rather large, white, Spinning Top day
candle represents little more than another breather,
adding to the already dreary look of the tape.
Did the market take on even a bit more sag on
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Wednesday's PMT Chart: