BS"D

Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Wednesday presented us with lots of range, but the stair stepping
and stalling at each Pivot Level chopped our trades into small
pieces. We scored ok overall, but it took lots of Maalox!

Enjoy and be well,

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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
Wednesday 03 April 2013

1 = Wednesday morning opens with an Anomaly 2-bar (5-min two day, bottom left chart) through
the Close/Pivot.

Volume is massive, as we are pulled in on a large red candle exiting the green fog. At the
close of the candle advance the stop to Free Trade and a tik. Smile, and hang on for a free
ride. No risk is nice!

B = Large (looks small due to large ABS and overall rangy today) red Spinning Top. Per PMT
stop rules, move the profit-locking stop above the high of the candle.

NOTE: Bloated ABS suggests we need to expand our exit, stop
and MPG placements to avoid getting stopped out at every
Price swing.

C = Late-in-the-Move DVS (pink arrow) blasts a giant red candle through the S1. Normal stop
placement leaves our position in violation of PMT Maximum Profit Giveback (MPG) rules.
Mental stop at Giveback Level (expanded due to large ABS).

D = If you don't exit as the next (white) candle forms a reversal pattern (getting positive
slippage on the following candle), you surely know by now that the Bears have not
successfully regained sente. Exit Now! +/- 4.25 points

Price Action turns sideways, first at the S1, and then again at the S2.

2 = It's 1:30 Action Time and Trading Volume resumes (pink arrow), permitting us to enter
aggressively below the S3 (tentative Floor for a new LT Trend Channel, Daily, bottom right
chart, dashed green line).

E = Large red candle. Our position is in MPG violation. Mental stop at Giveback Level.

F = Red inverted (Bull) Dragonfly. Per our stop rules, move the profit-locking stop above
the high of the candle.

G = Large red candle. Inch the profit-locking stop down a bit, above the high of the candle.

The next two white candles surely signal a mid-air reversal, a classic PMT Exit Now! Signal.
+/- 2 points

3 = Interesting 2-bar/failed retest of the S3.

H = Just as the PMT entry clock runs out, a large red candle/failed 123 test of MA pulls us
in. Advance the stop above the MA.

J = Volume perks up (pink arrow), plunging a large red candle into MPG violation. Mental
stop at Giveback Level.

K = Large red candle. As we enter the EOD Hiccup Zone, the elongated bottom wick and the
attendant DVS (pink arrow) each signal exhaustion. Position is in MPG violation. Nicely,
a mental stop at Giveback Level also affords flexibility (no need for Cancel-Replace order)
in case the move has in fact run its course.

When the next (giant white) candle recoups >2.25 points (larger than usual due to bloated
ABS), including the bottom wick on = K, we exit briskly. Got slipped on that exit!
+/- 2.50 points

EOD Hiccup (plum lines) tapes the classic "V" check mark pattern, right on time, and Price
Action runs back up to the S3.

PERSPECTIVE
(Daily, bottom right chart)

A new LT Trend Channel (green dashed line) seems to have
formed, with the Floor of the preceding Channel (solid
green lines) acting as the Ceiling of the new.

Wednesday's large red candle traversed the entire Channel,
perhaps signaling a bigger dip on Thursday?

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: