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,

We scored well Wednesday on the early morning run up, and our
Risk-conservative Money Management rules afforded adequate
protection from the nightmare of swings and false starts during
the rest of the day.

Expecting a retracement on Thursday?

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 08 May 2013

Wednesday morning opens somewhat gap-down, and immediately trades up to close
the gap.

1 = Two candle 123 off the Close completes with a white Bull Dragonfly exiting the fog.
Volume (pink arrow) is very strong. Put it together and we enter aggressively. Reduce
At Risk by advancing the initial stop under the High.

A = DVS (pink arrow) blasts a large white candle, resolving the S-trap stall. Move the
stop safely to Free Trade and a tik.

B = Large white Bull Dragonfly/Failed test of MA. Normal stop placement leaves our
position in PMT Maximum Profit Giveback (MPG) violation, and anyway, the R1 may just
stop forward Momentum. Mental stop at Giveback Level, but prepare to exit if R1
Resistance holds.

C = Second white candle closes above the R1. Per PMT stop rules, move the profit-locking
stop below the R1. The Late-in-the-Move DVS (pink arrow) warns of failing Momentum.

D = A Doji Sandwich Reversal tells us to Exit Now! With no time for a Cancel-Replace,
we wait helplessly for our stop to get hit.

E = Surprise! In fact, the R1 Resistance-turned-Support holds for a 123. Instead of
getting slammed, we add contracts. This white candle puts our position in MPG. Change
to a mental stop, and prepare for an emergency exit (the low Volume, pink arrow, warns
that the move is soon over).

No real emergency, but 4 out of 6 tiny candles are Dojis. It is now lunchtime, and the
Momentum is truly gone. Time to go flat. +/- 4 points

2 = Mid-lunch Reversal off the R1. No Volume (pink arrow). No Trade.

3 = Volume is strong (pink arrow). As a 2-candle 123 through the R1 completes, we enter
aggressively.

F = Large red candle. Stop above the high (normal stop placement) affords little
advantage, so consider moving to Free Trade.

4 = Large white Bull Dragonfly, a mid-air Reversal Signal, is definitely an Exit Now!
SCRATCH!

5 = A 123 Continuation "S" Signal through the R1, just as the PMT entry clock is about
to run out. Sadly, no Volume.

G = A bit later Volume does come to life (pink arrow), driving a lovely white Bull
Dragonfly. Even though our entry the clock has officially run out, were the Price
Window to the Primary Objective (R2) a bit move wide open we might have elected to go
for it.

The R2 stops forward Momentum, Price Action dies, and EOD closes atop the R2.

PERSPECTIVE
(Daily, bottom chart)

Wednesday tapes a moderate-sized white day candle, gently exiting,
and closing outside the LT Trend Channel Ceiling (green channel
lines). With no Funnymental reason for this climb to a new high,
expect Price Action to dip back into the Channel tomorrow.
But . . .

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: