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 and a good week,

Friday was regular mine field full of swings and traps.
Our day was made with a nice morning run up. Then
another couple of quickie afternoon trades paid our
overhead, leaving us with a smile, a very pained smile.

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
Friday 07 June 2013

Morning session opens gap-up, back inside the LT Trend Channel (green line), and heads immediately south
to retest the Channel Floor.

1 = We would need to count the white candle to get a preceding Bear trend, leaving us confused as the
tape presents a reversal at the green line.

When the kickoff qualifies as a 2-candle 123 (blue arrow), doubling the signal, we enter aggressively,
with multiple contracts.

A = Large white candle nose up at the R1 puts our position in PMT Maximum Profit Giveback (MPG) violation.
Mental stop at Giveback Level.

B = DVS (pink arrow) drives a large white candle, and again our position is in MPG violation. Note that
this is a 2-candle 123. Add contracts AND move a mental profit-locking stop to Giveback Level.

C = Large white candle once more puts us in MPG violation. Mental stop at Giveback Level. Twin Towers
(pink arrow) indicates a stall/sag is coming, so we are double glad to have a mental stop in play.

D = A 2-point candle is almost a small candle with today's bloated morning ABS. The elongated top wick
qualifies it as a stall. This looks like a good opportunity to employ my convention and to slip the stop
into the gap.

As the next (red Bear Dragonfly) candle signals a reversal, the stop is hit. +/- 7.25 points

That's how I like to start a day!

Reversal turns out to be no more than a sagging stall, but our ulcers surely couldn't have handled the
following hour and a half of sideways wiggle and traps.

2 = We enter aggressively on a DVS-driven Marubozu completing a 2-bar Reversal off the R2.

E = Large red candle through the MA. Per our stop rules, move the profit-locking stop above the MA.

F = Large red candle. Stop rules tell us to move the profit-locking stop above the high of the candle.
Noting that both = E and = F have elongated bottom wicks, make that a mental stop.

The next two candles, a Doji and a small white candle, warn of stall/reversal. Convert to a mental stop.
Exit as the next candle shows white. +/- 2.50 points

Volume drops to extreme lows and lunchtime sideways drift ensues.

3 = Doji Sandwich off the R1. Volume is up, but only somewhat.

G = We tentatively enter on a white Bull Dragonfly through the MA. Advance stop under the MA for reduced
At Risk. This move may call for aggressive trading technique.

H = Volume bulges (pink arrow), generating a large white candle. Per PMT stop rules, move the
profit-locking stop under the low of the candle. Don't like that elongated top wick one bit!

J = No follow through Volume to accompany this exhaustion gap and smallish white candle. Apply my
convention and slip the stop into the gap.

The next candle is a small white stall. When the candle after that completes a red Bear Dragonfly we go
flat. +/- 2 points

Turns out to only be an S-trap, and the run up continues without us all the way to a spike through the R2.

PERSPECTIVE
(Daily, bottom chart)

Friday taped a large white day candle that nicely re-entered
the LT Trend Channel (green channel lines. Monday probably
will retest the Channel Floor before the Bulls try to press
the Price Action deeper into the Channel.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Friday's PMT Chart: