BS"D
Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
******************************
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
Thursday was ultimately a Doji day, but both the morning Price
Action swell and the afternoon ebb afforded us trading
opportunities. We took nice bites/profits in both directions.
TGIF!!!
Enjoy and be well,
******************************
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************
E-mini ES H3
Thursday 25 April 2013
1 = Morning session opens gap-up with a Double Bottom Anomaly Signal (Overnight, bottom left
chart) off the R1.
A = We enter on a white Spinning top. No rule here, but I personally like the stop advanced under
the low of the preceding (Doji) candle (good ole risk-conservative me!)
B = Healthy white candle completes a 2-candle 123 through the floor of the LT Trend Channel (green
line). Per PMT stop rules, move the profit-locking stop under the low of the candle/Free Trade plus.
Add contracts.
Single-candle stall, and a small white candle (blue arrow) puts our position in Maximum Profit
Giveback (MPG) violation. With the possibility of interference from the R2 Resistance, we are glad
to convert to a mental stop at Giveback Level.
Alternate Reading:
The candle (black arrow) taps on R2 signaling an Exit Now! +/- 1.75 points
2 = If you are now flat, this high-Volume (pink arrow) 2-candle 123 signals an aggressive entry.
This is a chance to rejoin the fray. Otherwise (still in the trade), add contracts and move the
profit-locking stop under the R2.
C = Late-in-the-Move DVS (pink arrow) drives a large white Spinning Top. Both the candle and the
Volume suggest exhaustion. Move the profit-locking stop under the HighW.
D = S-trap resolves with a DVS-driven (pink arrow) large white candle. Our position is now in MPG
violation. Mental stop at Giveback Level.
E = Yet another DVS (pink arrow) pumps a rather small inverted (Bear) white Dragonfly to (virtually)
tap on the R3 and retract. That's a clear Exit Now!
If you were in doubt, the second small inverted (Bear) white Dragonfly is proof that this move is
over. +/-5.50 points (from = 1), , or +/- 3.0 points (from = 2)
Volume dies off, and lunchtime sideways drift ensues near the R3.
NOTE: ABS is diminished today. Consider adjusting Risk
accordingly by tightening stop, exit, and
MPG placements.
3 = Rather odd Doji Sandwich is followed by a 123 (blue arrow), which makes it a Head and Shoulders.
F = We enter on this red candle.
G = Price Action retests the R3 Support-turned-Resistance with a 123 red Bear Dragonfly. When this
small red candle breaks free, it seems prudent to move the stop to Free Trade.
H = Small breakaway gap, and a healthy red candle heads south. This is a good opportunity to
employ my convention and slip the stop into the gap.
J = Late-in-the-Move DVS (pink arrow) suggests exhaustion, as does the large red inverted (Bull)
Dragonfly. No matter, since we exited as soon as the tail of the Dragonfly tapped on the R2 and
retracted. +/- 2.75 points
4 = Not much room to the LT Trend Channel Floor (green line), but that S/R level hasn't been too
reliable of late. We like the 2-candle 123 through the R2.
K = We enter on the next (red) candle, but immediately SCRATCH! as the Twin Towers DVS (pink arrow)
pumps the tail of the candle spiking through the green line and retracting. +/-0.75 point
Price Action wobbles atop the green line, in the R2-Green line channel, to an EOD close at the R2.
PERSPECTIVE
(Daily, bottom right chart)
Not only did Thursday's white day candle climb deeper into the
Expanding Triangle (lavender lines), it also managed to insinuate
itself back into the LT Trend Channel (green channel lines).
May be lots of tradable Price Action, 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:
