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,

Overall, Monday's day session closed as a Doji. Our risk-conservative
Pivot Magic Trading Money Management rules kept us from falling into
the many traps. Meanwhile, we managed to take several healthy bites
out of both the run down and the run back up.

Revved for Tuesday!

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
Monday 22 April 2013

Monday opens gap-up with an aggressive-entry Anomaly 2-bar (Overnight, bottom left chart) through the
R1. At the close of the candle, move the stop to Free Trade and a tik.

A = Large, slightly red, Doji. Not a very good sign. Per PMT stop rules, move the profit-locking stop
above the high of the candle.

B = Giant red candle through the MA. Position is in Maximum Profit Giveback (MPG) violation. Assuming
this is move is soon to run out of Momentum, we're double glad to place a mental stop at Giveback Level.

The next (white) candle taps on the Close and retracts. The opening gap is closed, and we have a Pivot
Scalp Exit Now! Signal. +/- 4.75 points

2 = Large white Bull Dragonfly "P" Signal at the Pivot. Entry would place us immediately into the green
fog. Pass.

3 = A 123 type reversal through the Close.

C = Volume comes to life (pink arrow). We are pulled in on a large white candle exiting the fog.
Advance the stop under the MA.

Once this white candle breaks free, following the mini-Twin Towers and a brief S-trap stall, it feels
right/safe (good ole risk-conservative me!) to move the stop to Free Trade and a tik.

E = DVS (pink arrow) drives a large white inverted (Bear) Dragonfly. Is this move skidding to a halt?
Per our stop rules, move the profit-locking stop under the low of the candle.

F = Late-in-the-Move DVS (pink arrow) exhausts Momentum, driving a large white candle to tap on the
R1 and retract, a Pivot Scalp Exit Now! Signal. +/- 4.25 points

Price Action settles into lunchtime sideways drift mode along the R1.

4 = Low-Volume (pink arrow) Bull 123 is not very interesting.

G = It just got interesting! In acceptable time proximity to our signal (= 4), Volume jumps to life
(pink arrow), and we get pulled in on a large white candle. At the close of the candle, move the stop
to Free Trade.

H = Large white Marubozu (full-bodied candle with no wicks). Mid air? Odd place/time to see one of
these sumo candles! Normal stop placement leaves our position in MPG violation. So close to the
Primary Objective (R2), a mental stop at Giveback serves a double purpose (i.e. quick exit is possible
without a slow Cancel-Replace order pair).

H = Small white inverted (Bear) Dragonfly stretches to tap on the R2 and retract. We exit briskly.
+/- 3.25 points

5 = Neither the red Bear Dragonfly nor the 123 kickoff (blue arrow) takes off, and Price Action rides
the underside of the R2 right up to EOD Hiccup.

EOD Hiccup (plum lines) is on time, and tapes the classic "V" check mark pattern. Not much steam as
the BBs offload, and our session closes midway between the R1 and R2, pretty much a Doji day overall.

PERSPECTIVE
(Daily, bottom right chart)

Taping a white Spinning Top type day candle, Monday moved deeper
into the Expanding Triangle (lavender lines). Doesn't seem too likely
that the Bulls will make it all the way back up to expand the peak of
the Triangle. Thus, inductively, we conclude that the tape reads as
a retest before a breakout (?).

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Monday's PMT Chart: