BS"D
Good morning,
We piggy-backed on the BBs for a nice big bite out of the
Plunge portion of the day's Plunge-Slide maneuver.
TGIF!!!
Enjoy and be well,
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
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Pivot Magic Trading
First Rule:
"Any time you don't know what
is happening, get out!"
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E-mini ES H3
Thursday 07 February 2013
Thursday morning opens with an Anomaly (2-Day continuous, bottom left chart, blue arrow)
Reversal at the Close. Price Action converts that to a 123 through the Close, which in
turn completes the key/tradable Signal, a 123 spiking through the Pivot (orange arrow).
A = We leap aboard as a 2-candle 123 makes that 4 Bear Signals. Multiple contracts?
Duh!
Giant red candle rips through the Mid, and pauses atop the S1. Love it when the first
candle-ride takes us to Maximum Profit Giveback (MPG) violation. Mental stop at Giveback
Level.
B = Add contracts as another DVS blasts free a 123 through the S1. Near the close of the
candle, move the profit-locking stop above the Low.
C = Vicious Black Volume Bar of Death (pink arrow) Doji. If next candle is white, we
will want to exit efficiently. Change to mental stop.
D = Some of us jumped at first signs of white in the early minute of this candle. Slower
on the draw, the rest of us were pleased to see the red Bear Dragonfly, which violates
MPG rules, and we simply slightly tighten our mental stop to Giveback Level.
E = Large red Spinning Top spikes to tap on the S2 and retract. That of course is a PMT
Pivot Scalp exit Signal. +/- 7.50 points
2 = DVS (pink arrow) rockets a giant white Marubozo, completing a 2-bar through the S2.
Entering on a DVS, so far from the Pivot/Close, and so close to lunchtime, is rarely a
good bet.
If you were a bit trigger-happy, as always, worry. Whenever the tape presents one of
these giant sumo candles, we need to worry if the troops will rally into the hole
punched by the Marubozu.
F = Failed test of MA. If you are in, per our rules, move the profit-locking stop under
the MA.
The move now droops to exhaustion, and we go flat.
3 = Volume (pink arrow) at lunchtime levels, but a large white candle breaks free for a
group of Reversal Signals. Too far to ride, especially uphill, without massive Volume.
Pass.
4 = Smallish DVS (pink arrow) rockets a giant white Marubozo, completing a 123 through
the S1. (Something familiar about those words?)
We just were reminded of this lesson (= 2). Pass.
BTW: Notice the almost identical patterns repeating in the green oval and the peach oval.
Following the Marubozu break though, both bursts peaked out short of the Primary Objective
and returned to retest the Support of the PL just crossed. The following reversals, =3 and
= 5, both immediately stall with a Doji, and finally, drift up to the next Primary PL.
EOD closes back at the Pivot, for a Doji day.
PERSPECTIVE
(Daily, bottom right chart)
Market continued breathing on Thursday, with a healthy
red Doji day candle. Price is still hovering mid LT
Trend Channel (green channel lines).
Prediction is useless, except for,
"BEWARE OF TRAPS ON FRIDAY!"
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Thursday's PMT Chart:
