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,

Good morning,

Wednesday was kinda fun daytrading the E-mini, with a
nice bite (profit) in the morning and another in the
late afternoon. We even played out a non-PMT trade
to round out our discussion.

Let's see what Thursday has in store for us!

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 01 May 2013

1 = Wednesday morning opens gap-down with a questionable reversal off the Pivot (blue
arrow). The brief run down returns for a 123 retest (orange arrow).

A = We enter on a giant red candle through the Mid. The candle closes just shy of the
S1/LT Trend Channel Floor (green line). At the close of the candle move the stop to
Free Trade.

B = Large red candle through the re-enforced S1. Normal stop placement (above the S1)
leaves the position in Maximum Profit Giveback (MPG) violation. Mental stop at
Giveback Level.

C = Black Volume Bar of Death (pink arrow) Doji. Since the preceding candle was a
Twin Towers (pink arrow, = B), indicating a stall/sag/retest on next candle, there
seems little to gain by waiting to see if the next candle turns white. Either exit
immediately, or the instant the next candle (inevitably) shows white.
+/- 3.50 points

2 = The Doji is a dagger in the heart of the Doji Sandwich Signal, weakening it.
Volume (pink arrow) behind the 123 kickoff isn't overly encouraging either. With
the Pivot just the right distance away for a quick Pivot Scalp, you might nonetheless
elect to take a chance. Be equally aggressive with your stops!

NOT AN ACCEPTABLE BEGINNER PMT TRADE
FOR DISCUSSION PURPOSES ONLY

D = Early entry on this small gap and white candle. Aggressively move the stop into
the gap, minimizing At Risk.

E = Large white candle. Get the stop to Free Trade and a tik.

Price Action stalls at the Mid, suggesting that we convert = E to a mental stop at
Free Trade and two tiks.

F = White bull Dragonfly qualifies as second white candle closes above the Mid. Per
our stop rules, move the stop under the Mid.

When two candles later Volume has dropped to low lunchtime levels, and it is clear
from Price Action that the Bulls have exhausted their Momentum, the time has arrived
to go flat. +/- 1.75 points

Lunchtime sideways drift eventually dips through the green line on increased Volume
(no entry signal), but Price Action continues to swing and bounce sideways.

3 = Reversal Signal dies.

4 = Second attempt 123 also dies.

5 = Failed TTT also completes a narrow Head and Shoulders pattern. Confidence in
the Failed TTT Corollary, supported by the relative reliability of H&S patterns,
encourages us to consider entry.

G = Pulled in as large red candle clears the right shoulder and dips slightly through
the Low. At the close of the candle, move the stop to Free Trade.

H = Albeit a small red candle, this candle qualifies for second red candle closes
below the Low. Per PMT stop rules, move the profit-locking stop above the Low.

J = Black Volume Bar of Death (pink arrow) Doji. Prepare to exit if next candle is
white.

K = Not white!
Giant red candle dives toward the Primary Objective, S2. Our position is in MPG
violation. Mental stop at Giveback Level also prepares us to exit briskly if the
S2 holds.

L = Large wispy red Doji/Dragonfly taps on the S2 and retracts. That's an Exit Now!
Signal. +/- 4.75 points

The day now dribbles out to close EOD atop the S2.

PERSPECTIVE
(Daily, bottom chart)

Well, looks like we're not yet ready to abandon the
Expanding Triangle (lavender lines) and solely trade
the Trend Channel. Wednesday taped a healthy red
day candle just barely exiting the LT Trend Channel
(green channel lines). Depending on the next few
days' Price Action, we may need to adjust the
channel lines for the current portion of the trend.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: