BS"D
Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
******************************
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
Wednesday taped a Gann-perfect 45-degree climb to mid-day,
and then a near-perfect 45-degree descent back down to the
Close. Only the EOD bounce kept us from witnessing a totally
Doji day. We happily scored well on the way up, and even
better on the way down.
Stay tuned for Thursday!
Enjoy and be well,
******************************
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************
E-mini ES H3
Wednesday 15 May 2013
Wednesday morning opens at the Close, and the battle continues there for the next hour. When the
defenses are finally overwhelmed and the Bulls cross above, they do so (sadly) without any
PMT-tradable signal. We are forced to sit on the sidelines and watch Price Action climb for the
next hour.
1 = Volume is interestingly strong (pink arrow) at what normally marks the beginning of lunchtime
drift. As the R1 Resistance is breached by a 123, we enter aggressively.
NOTE: Except for an occasional large candle, ABS is a bit
small today. Consider tightening exit, stop, and MPG
placements.
A = Following a brief stall, DVS (pink arrow) drives a large white candle north. Normal stop
placement coincides with Maximum Profit Giveback (MPG) level. Make it a mental stop.
B = Healthy white candle returns position to MPG violation. Move the stop under the low of the
candle.
C = S-trap resolves and we tighten out stop under the low of this white candle (a variation of our
NEW PULL-BACK LOCK-IN S-TRAP EVASION MANEUVER).
D = Healthy white candle. Per our ABS-adjusted stop rules, move the profit-locking stop under the
low of the candle.
The next (three) candle taps on R2 and retracts, signaling a Pivot Scalp Exit Now! +/- 4.50 points
2 = A 2-bar "P" Reversal off the R2. Volume surges (pink arrow), and we enter on the red Bear
Dragonfly (blue arrow). Move the stop above the MA as the next (red Bull Dragonfly, green arrow)
candle bounces from the MA.
E = Large red candle. Per our stop rules, move the profit-locking stop above the high of the candle.
The single DVS (pink arrow) suggests failing/failed Momentum.
F = DVS (pink arrow) drives large red candle. Normal stop placement, above the high of the candle,
is close to MPG, so make it a mental stop.
G = S-trap resolves with a large red candle. Per our stop rules, move the profit-locking stop above
the high of the candle.
H = Yet another single DVS (pink arrow) blasts a giant red candle through the R1. Per PMT stop rules,
move the profit-locking stop above the R1.
J = A 123 retest of the R1 resistance fails. When this large red candle gaps and pulls free we add
contracts, and slip the stop into the gap (per my convention), nicely locking in profits.
K = Small exhaustion gap and a large red candle. The Late-in-the-Move DVS (pink arrow) invites
(scares?) us to once again employ my convention and slip the stop in the gap.
Before we can even react, the next large white candle takes us out at the stop. +/- 6.50 points
The well proven MA holds, and Price Action resumes the plunge to the Close.
3 = This mass of a DT Multi-bottom (orange oval) might be intriguing, but the Price Window to the
well proven R1 is too small for entry. We shut down mid-assault.
Somewhat early, the EOD Hiccup (plum lines) traces a classic "V" check mark pattern and rips through
the R1 Resistance. The day ultimately returns to rest atop the PL for EOD close.
PERSPECTIVE
(Daily, bottom chart)
Wednesday taped a medium sized white candle (kind of a Spinning Top).
Notice that we have adjusted the angle of the LT Trend Channel (green
channel lines) a bit. Nonetheless, Price Action has not only climbed
to new highs, but is well outside the Channel.
What happened to the "inevitable" dip back into the Channel that we
were anticipating?
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Wednesday's PMT Chart:
