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,
As we predicted in Friday's PMTJournal PERSPECTIVE:
"Don't count on Monday following through [on Friday's
healthy Bull move] . . . "
Except for the most Advanced PMT traders who brazenly
executed a NEW PULL-BACK LOCK-IN S-TRAP EVASION MANEUVER,
Friday was a total dud.
CU 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 20 May 2013
1 = Monday morning opens with an Anomaly (overnight, bottom left chart) 2-bar at the Close.
The move never takes off. Just as well, we're not crazy about Anomalies off the Close anyhow.
2 = A 123 rebound through the Close.
A = We are pulled in on a large white Bear Dragonfly Doji. Not a very exciting candle!
Advance the stop under the MA.
B = Large white candle through the High. Not wild about the elongated top wick, especially
following = A. Zip the stop up under the High.
C = Stall, and then a white Spinning Top. (If you lost count, that's three white exhaustion
candles and one red almost reversing candle.) This move is dead. Exit Now! (or else get
taken out at the stop on next red candle for less). +/- 1.25 points
Price Action swings wildly in place, traveling sideways at the High for an hour before gently
climbing to test the R1.
3 = Strong Volume (pink arrow) confirms an aggressive entry on this 123 through the R1.
D = Nothing overmuch, but we can add contracts on this 2-candle 123.
E = Uggghhh! Giant Black Volume Bar of Death (pink arrow) Doji. Prepare to exit on red.
No red, but not much white either, on the next candle.
F = Healthy white candle at least permits us to get our stop set at Free Trade and a couple
of tiks.
G = A Doji Sandwich mid-air Reversal signals Exit Now! +/-1.0 point
4 = A 123 attempt at crossing below the R1.
H = Gravity and the pull of the Close add to the Volume increase (pink arrow), and, hungry for
a trading opportunity, we are pulled in on a large red candle. At the close of the candle,
move the stop to Free Trade.
J = Most of us simply exit as the next white candle tapes a bullish Doji. Small as it is, it
still could fairly be called a reversing candle. SCRATCH!
ON THE OTHER HAND, with the upside protected by the MA, this is definitely a classic situation
calling for our NEW PULL-BACK LOCK-IN S-TRAP EVASION MANEUVER (possibly too risky
during lunchtime?):
1. Pull the stop.
2. Weather the S-trap stall. The Doji and tiny white Spinning Top are
heartwarming TELLs that the Bulls aren't about to mount an offensive.
3. Large red Marubozu fails at the MA. As the trap resolves, advance
the stop above the MA.
4. Stall resumes/continues with a small candle and a couple of Dojis.
No matter, we are once again safely protected by a stop at Free Trade.
L = Volume really comes to life (pink arrow). The S-trap fully resolves,
plunging a giant red candle through the High. Needless to say, move the
profit-locking stop above the High and grin widely.
Don't forget your Maalox!
N = Small exhaustion gap and a red Bear Dragonfly. Getting close to the
Primary Objective, the Close. Perfect opportunity for employing my
convention. Move the stop into the gap. Maybe even use a mental stop,
so we can escape briskly if/when the Close Support halts the move?
P = Tail of a red inverted (Bull) Dragonfly taps on the Close and Retracts,
a Pivot Scalp Exit Signal. +/- 4 points Quite a difference!
Price Action dies in the green fog Ambush Zone and trades sideways to EOD close atop the Close.
PERSPECTIVE
(Daily, bottom right chart)
Monday didn't follow through on Friday's run up, but rather taped a
tiny white inverted (Bear) Dragonfly Doji, breathing in place.
Hesitant to project what Tuesday will bring. Impeachment perhaps?
LOL!
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Monday's PMT Chart:
