BS"D
Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
******************************
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
We sure called that one, assertively in the PERSPECTIVE
section of our Daily PMTJournal, and again gently in our
opening letter ("sag on Wednesday"). Wednesday indeed
taped a huge swing, ultimately sagging to test the LT
Trend Channel Ceiling (green channel lines). It was
wild and exhausting day trading the e-mini, but we scored
almost 28 points, making it more than worthwhile!
Stay sharp for Thursday.
[SNIP]
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 22 May 2013
After opening just above the Pivot/Close, Wednesday morning opening range Price Action heads
for the R1.
1 = Massive DVS (pink arrow), and we enter a 123 aggressively, above the R1, on a giant white
completion candle through the PL. At the close of the candle, move the stop to Free Trade and
a couple of tiks. Yesss!
A = Vague 123 and a large white candle rips through the R2. As it passes through, add contracts,
and, per our stop rules, move the profit-locking stop under the R2.
B = Brief stall, and a large white candle continues to a new high. Per PMT stop rules, move
the profit-locking stop under the low of the candle. This is +/- Maximum Profit Giveback (MPG)
Level, so make that a mental stop.
When the next (red) candle retraces >62%, exit briskly. +/- 9.25 points
Nice way to start the day!
2 = A High-Volume (pink arrow) 2-bar at the R2.
C = As the 2-candle 123 breaks below the R2 on huge Volume (pink arrow), we enter with multiple
contracts.
Not sure if that is a spike-through retract or just a pause. Anyhow, our position is instantly
in MPG violation. Mental stop at Giveback Level is already at Free Trade and a point.
As soon as the next candle retraces the rest of >2 points (including bottom wick of = C), pull
the plug. +/- 5 points
3 = Two bar "P" Signal at the R1. Volume (pink arrow) is down a bit, but still quite strong.
R2 Resistance is unproven, so we have a decent Price Window.
D = We enter above the R1 on the next white candle. It's a 2-candle 123, so again we enter with
multiple contracts. Jump the stop to Free Trade and a tik or two.
NOTE: ABS today is quite large so we've expanded our stop,
exit, and MPG placements.
E = Large white candle/failed test of MA. Normal stop under the MA is also at Giveback Level,
so, since we are in spitting distance of the Primary Objective, R2, make it a mental stop.
As the next red candle retraces >62%, Exit Now! +/- 3 points
Love these large ABS days; even a SCRATCH makes for good profit!
Lunchtime sideways drift slides along the R2, drooping to gently tap on the R1 at 12:35.
4 = A 2-candle 123 at the R1. Volume is up a bit from lunchtime lows (pink arrow).
F = A 2-candle 123 breakout. Volume is up a drop more. Fairly certain that the pull of the
Pivot/Close will add to Volume and Gravity, we enter with multiple contracts.
G = Per our rules, move the stop above the high of this candle. That's pretty much MPG Giveback
Level. Assuming the Pivot/Close Support will bring this move to a halt just before the FOMC
minutes, trade very aggressively. Start by making that a mental stop.
H = Late-in-the-Move DVS (pink arrow) signals exhaustion. Normal stop placement above this red
candle is also pretty much at Giveback level. Prepare for the likely case that the Pivot will
hold; make it a mental stop.
J = Brief Doji stall and a large red candle rams through the Pivot. Per our stop rules, move
the profit-locking stop above the Pivot.
K = DVS exhaustion Volume (pink arrow) pumps a red Doji to spike the Close and retract. That
is a classic Pivot Scalp Exit Now! Signal. +/- 6.25 points
Things go silent just as the FOMC minutes are due.
L = Not quite sure why 3 week old FOMC minutes generate hysteria, but Volume and Price Action
go whack. We opt, per our risk-conservative rules, to sit it out.
5 = A 123 tests the S1 Support-turned-Resistance.
N = A small 123 kickoff, and we enter on a DVS-driven (pink arrow) giant red candle with
multiple contracts. The candle taps on the S2 and retracts, signaling a Pivot Scalp Exit Now!
+/- 4.25 points
Once again we marvel when large ABS makes a SCRATCH nicely profitable!
6 = A red Marubozu completes a 123 off the S1. Volume is way down, our PMT entry clock has
wound down, and the S2 has been lightly proven. We pass. Sadly, we miss out on an easy 9-point
run down to the S3.
EOD Hiccup (plum lines) is on time, and traces a classic "V" check mark pattern. Price Action
bounces off the S3 to an EOD close a couple of points above the S2.
Wrung out, but content!
PERSPECTIVE
(Daily, bottom chart)
Wednesday taped a gigantic red Bear Dragonfly day candle.
This dive may just continue on Thursday with an even stronger
test of the recently exited LT Trend Channel Ceiling (green
channel lines). Of course, following such excitement on
Wednesday, Thursday may just as well pause to breathe first.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Wednesday's PMT Chart:
