BS"D
Good morning,
Monday traversed lots of range, but the stair stepping at each
PL made our trading day a bit frantic. We got some nice bites
(read: Profits), so we have no complaints!
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 H3
Monday 25 February 2013
Monday morning opens gap-up at the R2, dips to test the R1, and returns for an R2 retest.
1 = Red Bear Dragonfly through the R2.
A = We enter on a healthy red candle. Advance initial stop above the R2.
NOTE: Due to the large trading range today, the Price
(vertical axis) is charted in 2-point increments. Do
not let this visually confuse you about candle size.
C = DVS (pink arrow) plunges a large red candle through the R1. Per PMT stop rules,
move the profit-locking stop above the R1.
D = Twin Towers (pink arrow) indicates that this large red candle completing a 2-candle
123 will be followed by a stall/sag. Don't add contracts.
The distorted candle size (see NOTE, above) makes the next white candle confusing. With
the Ambush Zone (green fog) so close below, when the candle retraces >62%, I read,
"Exit Now!" (Good ole risk-conservative me.) +/- 4.0 points
Price Action gets snagged in the fog and trades sideways for the next hour. Finally, at
11:30 the Bears overcome the defenses at the Close, and head south for the Pivot.
2 = Normally, during lunchtime a 123 through the Pivot wouldn't be very interesting, but
the Volume resumes (pink arrow) so we enter aggressively.
E = Large red candle through the Mid. Per our stop rules, move the profit-locking stop
above the Mid.
F = The tail of a red inverted (Bull) Dragonfly spikes the S1 and retracts, a PMT Pivot
Scalp Exit Now! Signal. Twin Towers (pink arrow) indicator agrees. +/- 2.50 points
3 = Though we might argue over the Price Window to the Pivot, the Volume has died (pink
arrow). Without confirmation we must pass.
Lunchtime sideways drift resumes in the S1-Pivot channel.
4 = Trading Interest/Volume (pink arrow) perks up nicely, and we enter aggressively on
a 2-candle 123 through the S1.
G = Large red candle. Move the stop to Free Trade and a tik.
H = Following a brief S-trap stall, the Bear assault continues with a large red candle.
Our position is in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. The
worrisome elongated bottom wick of the candle (skid marks, brakes have been applied)
doubles our appreciation for a mental stop at Giveback Level.
J = Small exhaustion gap and a healthy red candle. This is a good time to apply my
personal convention. Slip the stop into the gap.
K = The tail of a large white Bull Dragonfly taps on the S2 and retracts, signaling
a Pivot Scalp Exit. +/- 6.0 points
Volume diminishes (pink arrow). Without confirmation, we need to pass on reversing
our position.
Bounded by a hard MA ceiling, Price Action trades sideways into the late afternoon.
5 = Tough choice: The PMT entry clock has just run out, but Volume is suddenly up
for a 2-candle 123 through the S2. Too many rule violations, we must pass.
Price Action dives to the S3, and sets up a classic "V" checkmark EOD Hiccup (plum
lines). The down leg dives cleanly for almost10 points!
We've gotta find a set of rules for a safe way to trade the Hiccup!
PERSPECTIVE
(Daily, bottom chart)
Monday's blasted a giant red candle south, first testing
the recently exited LT Trend Channel Floor (green channel
lines), and then diving massively. From the open we were
wary whether the troops would rally into the hole punched
by Friday's sumo candle. Would we witness an assault on
the LT Trend Channel Floor, or would the run down would
resume. Got a bit of both.
Again, note how similar the tape of the first two months
of 2013 is to that of the last two months of 2012.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Monday's PMT Chart:
