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,

Although Wednesday was a nice rangy day (close to 30
points), it was a heartbreaker to trade. We SCRATCHED
a bit, and scored a bit, profiting nicely overall.
Drank a whole lot of Maalox Wednesday. LOL!

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
Wednesday 12 June 2013

1 = Morning session opens gap-up with a Double Top Anomaly (Overnight, bottom left chart) off the R1.

A = We are pulled in on a large red candle. At the close of the candle, move the stop to Free Trade.

B = Black Volume Bar of Death (pink arrow) Doji resolves in a large red candle. Per PMT stop rules,
move the profit-locking stop above the high of the candle.

S-TRAP

* Some of us exit as >62% is retraced. +/-1.75 points

* Toward the opening gap/Pivot/Close/green line, ripe
set of Objectives, with Free Trade and at least a point
locked in, advanced readers of the tape see a low Risk,
high odds opportunity, and use their discretion to wait
out the brief S-trap. The immediate recovery after the
Black Volume Bar of Death Doji (= B) strengthens our
resolve to hang on.

C = Advanced traders who weathered the trap, following this massive red candle, move the stop
down, above the Pivot.

The opening gap is officially closed.

The tape soon presents a large white Bull Dragonfly Reversal, Exit Now! Signal.
+/- 7.25 points

2 = A retest and a 2-bar Reversal, into the green fog. Pass.

What?!? Aggressive entry is permitted, as this 123 through the Pivot breaks out of the fog.
Enter with multiple contracts since there is a 123 above and a 123 below the Close.

D = Drop in Volume reveals retroactive Twin Towers DVS (= 2, pink arrow), warning that a stall
is coming now. Although ABS is clearly bloated, making this only an average sized candle,
consider a mental stop at Free Trade.

E = Free Trade is threatened by this large white Bull Dragonfly, mid-air reversal. SCRATCH!
At least we got positive slippage on the next (red) candle.

The stall continues for the next half hour, and then, Price Action vigorously dives for the S1.

4 = Volume (pink arrow) is high, maybe even Twin Towers indicating a stall right out the gate.
Entry into this final pre-lunchtime dive, even on the deceptively strong break out from the 123
retest of S1 Support-turned-Resistance (blue arrow), is prohibitively risky.

Lunchtime sideways drift show intermittent Bull attempts to advance. The defenses at the S1
rebuff a second attempt (green arrow), and Price Action continues to drift along under the S1.

5 = Failed attempt leads to a 2-bar (completing on the large red 3rd candle) through the S1 .
Absolutely no Trading Interest/Volume behind this otherwise good-odds, Failed TTT Corollary
reversal Signal. Suddenly Volume jumps to life (pink arrow) and a large red candle plunges
toward the S2. At the close of the candle, move the stop to Free Trade and a tik or two.

F = The tape shows a large red inverted (Bull) Dragonfly. Twin Towers DVS (pink arrow) again
and we now twice informed that a stall/sag is coming next. Our position is in Maximum Profit
Giveback (MPG) violation, so the dilemma is solved. Mental stop at [expanded for large ABS
today] Giveback Level. This solution also leaves room for a stall/S-trap to work out, with
the stop neither choking it, nor incurring unacceptable Risk to us.

G = S-trap peaks shy of Giveback Level, and resolves with a DVS-driven (pink arrow) large red
candle. Per our stop rules, move the profit-locking stop above the high of the candle.

H = Another brief stall, and another large red candle tapes in MPG violation. Mental stop at
the Giveback Level.

J = DVS (pink arrow). Price Action continues to gently waft down to settle on the S2 Support
(ultimately stalling out there to EOD close).

The large red candle taps on the S2 and retracts.

Unsure?

The next candle (large white Spinning Top) taps on S2 and retracts. Pivot Scalp Exit is
signaled. Exit Now! +/- 5.75 points

PERSPECTIVE
(Daily, bottom right chart)

Wednesday taped a very large red day candle, successfully
exiting and closing below the LT Channel Floor (green
channel lines).

Perhaps the adjusted blue line will hold the avalanche in
check tomorrow?

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: