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,
Tuesday's Price Action broke out of, "Monday's tape describes a
daylong Descending Triangle (light blue lines)."
We scored a couple of fair trades, as we projected in yesterday's
PMTJournal PERSPECTIVE section (sort of), ". . . Channel Floor
retest before the Bulls try to press the Price Action deeper into
the Channel . . . likely on Tuesday." The BBs did first retest
the Channel floor before pressing deeper into the Channel. The
press, however failed. We wound up watching (and trading for a
profit!) the Bulls afternoon droop, exhausted, gasping for breath,
closing EOD just outside the Channel Floor.
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
Tuesday 11 June 2013
As Technical Analysis predicted, Tuesday opened gap-down with a test spiking through the LT Trend
Channel Floor (green line), beyond the S3.
1 = Reversal through the S3. The 2-bar Reversal is DVS-driven (pink arrow). We don't trust
DVS-driven 2-candle Signals for longevity. Not wild about trading beyond the S3 Extreme PL anyway.
Pass.
2 = Large white Bull Dragonfly signals a "P" Reversal at the S3.
A = The green S/R line above only exerts influence inside the Channel, so the Price Window through
the green line and heading toward closing the opening gap is wide open. We are pulled in on this
white candle. Noting that it is also a 2-candle 123, we confidently enter with multiple contracts.
B = DVS (pink arrow) pumps a large white candle into the Channel. Per PMT stop rules, move the
profit-locking stop under the green line. The DVS and the elongated top wick each warn of waning
Momentum.
C = Second healthy white candle closes above the MidM. PMT stop rules encourage us to move the
profit-locking stop under the MidM.
Black Volume Bar of Death Doji and the next candle turns red. That's a mid-air Reversal, Exit Now!
+/- 3.0 points
3 = Long tail of a white inverted (Bear) Dragonfly spikes the S2, initiating a 123 of the S2.
E = Volume is strong (pink arrow), permitting us to enter aggressively. Noting that the breakout
is also a 2-candle 123, we entry with multiple contracts.
F = Volume is still strong for the final pre-lunchtime assault. As this white Bull Dragonfly kicks
off with a 123 of its own, add more contracts as.
G = DVS blasts a giant white candle to the S1. Reading the Volume as Twin Towers, we elect to exit
before the stall/sag/retrace. +/- 3.75 points
4 = Lunchtime sideways drift tapes a Failed TTT at S1 Resistance. Numerous Volume spikes (blue
arrows) join for a TELL. The BBs want to abandon the opening gap quest and retest the LT Trend
Channel Floor (green line) instead. Sadly, we have no satisfactory entry signal.
5 = Fourth lower high (plum line), following a Failed TTT, and we are searching for a signal. If
we count the tiny Doji, we have a preceding trend and a 2-bar "P" Reversal off the MA. That
qualifies as a PMT "S" Signal.
H = Volume comes alive (pink arrow), and we are pulled in on a large red candle nudging through the
S2. At the close of the candle, move the stop to Free Trade and a couple of tiks. Yess!
J = Second red close below the S2. By now we have added contracts for the 123, and move the
profit-locking stop above the S2.
K = Late-in-the-Move DVS (pink arrow) plunges a giant red candle through the MidM and green line.
Position is in MPG violation and the tape reads, "exhaustion". Mental stop at Giveback Level
protects our profits against both readings.
L = Lower wick of this white Bull Dragonfly spikes within range of the S3. Unsure, we only exit
as the candle shows white. +/- 4.75 points
6 = S3 Support halts the Bears. Not sure how to read the Doji-cored formation smear on the tape.
Volume is vaguely up (pink arrow), but, with Channel re-entry just blocked (= L), we need a real
signal.
7 = Price Action does re-enter the Channel, briefly, and then retests the Floor (green line). S2
is proven from the morning, so the Price Window is too small. Even as Volume leaps to drive this
Marubozu monster to a rock-hard encounter at the S2, we watch on the sidelines.
EOD closes just outside the LT Trend Channel, at the proven strong S3 Support level.
PERSPECTIVE
(Daily, bottom chart)
Tuesday's large red day candle closes resting just below
the LT Channel Floor (green channel lines).
A breather testing the Floor again on Wednesday seems
likely (before the predicted Bull attempt 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
=] ;-)>
Tuesday's PMT Chart:
