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,

Thursday taped a very large Descending Triangle (green lines).
As the Triangle was developing, we happily scored quite a few
points (and some SCRATCHES).

The Daily tape (bottom chart) and Thursday's Triangle exit
retest combine to suggest a Bear breakout from the LT Expanding
Triangle is in the works. Stay alert.

TGIF!!!

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
Thursday 18 April 2013

Thursday opens with a bounce north through the Pivot. Price Action immediately reverses
and heads back south through the Close.

1 = A 123 retest of the Close, mostly outside the green fog, is a PMT "S" entry Signal.

A = Small breakaway gap, and a large red (inverted) Dragonfly through the LowW pulls us
in. Advance the stop above the LowW for reduced at risk.

B = Late-in-the-Move DVS (pink arrow) blasts a giant red candle through the Low, closing
slightly through the S1.

Normal stop above the Low leaves the position in Maximum Profit Giveback (MPG) violation.
Two choices:

* Mental stop at Giveback Level

* Even though the S1 penetration is a bit diminutive, the DVS
surely exhausted Momentum, so move the profit-locking stop
above the S1.

C = If you chose the stop above S1 you are now stopped out. Otherwise, this Black Volume
Bar of Death (pink arrow) Doji says exit on white. Either way: +/- 5.50 points

2 = Double Bottom off the S1.

D = We are pulled in on a giant white Bull Dragonfly kickoff candle. Initial stop advances
under the Low.

E = Large white candle puts the position in MPG violation. Mental stop at Giveback Level.
Is that a Late-in-the-Move DVS (pink arrow)?

Next (red) candle is a mid-air Reversal Signal. As soon as we see white on the next candle,
exit. +/- 1.25 points

Turns out to be an S-trap, and bull Price Action continues on through the Close.

3 = A 2-bar through the Close.

F = We enter below the fog. Consider moving the stop to Free Trade.

The S-trap that follows is too large for us to weather and we SCRATCH!

4 = A "P" Signal through the MA qualifies as an "S" Signal.

G = A bit warily, some of us enter on the large red candle, with initial stop advancing
above the LowW

Notice that the Volume associated with the Doji is too small to be called a Death signal.
The Doji just misses our stop.

H = Since this is clearly a resolution of the S-trap, tighten the stop a bit, above the MA.

J = Still no Volume, but a very large red candle puts the position in MPG violation.
Mental stop at Giveback Level.

The next (white Spinning Top) candle penetrates the Low and retracts. Even though the Low
is a secondary PL, it seems prudent to apply our Pivot Scalp exit techniques.
+/- 4.50 points

Lunchtime Volume and drift now ensues. A third lower high completes a Descending Triangle
(green lines). Bear pressure is on.

5 = Volume (pink arrow) is aroused a bit as a 123 breaks out from the Triangle. Entry is
blocked by the proven S1 Support and we must pass. No worry, most often Triangle breakouts
return to retest, presenting us with a better second chance opportunity.

6 = There it is! The Triangle retest is also a 123 test of the S1 Support-turned-Resistance.

K = Volume is up (pink arrow) and we are pulled in on this red candle breakout from the LT
Expanding Triangle (Daily, bottom chart, lavender lines).

L = Large red Spinning top following a gap renders the gap an exhaustion gap. Use my
convention and slip the stop into the gap for Free-Trade-plus security.

N = Late-in-the-Move DVS (pink arrow) and an extremely long bottom wick on this red inverted
(Bull) Dragonfly combine to advise that the run is over. Place a mental stop above the high
of the candle with the intent to go flat if >2 points are recouped (which is almost a
guarantee. BTW, experienced PMTers would exit now instead of waiting. +/- 2.50 points)

Exit signaled +/- 2 points

7 = Nice Doji Sandwich slingshot of the MA. The move is heading smack into proven Resistance
at the S1. No entry here. The breakout from the Expanding Triangle returns to retest, and
our day is over.

PERSPECTIVE
(Daily, bottom chart)
Not sure exactly where the floor of the Expanding Triangle
lies (lavender lines), but Thursday's red Spinning Top
definitely closed, pressed nose down, tightly against it!

Could well be a massive breakout, but
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: