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,

Just as we suspected in yesterdays PERSPECTIVE discussion,
the " . . . adjusted [possible new LT Trend Channel Floor]
blue line will hold/[held] the avalanche in check tomorrow
[Thursday] . . ." Do we now have a third hit, confirming?

Once again, although Thursday was another rangy day (close
to 30 points), it was a heartbreaker to trade. Our Money
Management rules got us through without getting bitten.
However, as the day traded in a low-angle Trend Channel,
limiting the frequency and amplitude of our trades, we did
manage to TAKE a few bites ourselves. =] ;-)>

Finished the bottle of Maalox.

TGIF!!!

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
Thursday 13 June 2013

1 = Morning session opens with high-Volume (pink arrow) Anomaly Doji Sandwich through the
Close (5-Min 2-Day Rollover, bottom left chart. Also see your Overnight tape. Not presented here.)
Large white Bull Dragonfly not only forms a kickoff, but is also a "P" signal, and a 123. Most
importantly, it gives us the confirming second signal we prefer for an entry off the Close. Per
our discussion in the course work, consider entering with multiple contracts.

A = We are pulled in early on a large white candle. At the close of the candle, advance the
stop to Free Trade and a tik.

B = Another large white candle. This time, normal stop placement leaves our position in violation
of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback Level.

When the next (red) candle retraces >62% we have an Exit Now! situation. +/- 2.25 points

From the Open until 12:30 the Bulls gently, but firmly, press on the Pivot/Base of Ascending
Triangle (lavender lines).

2 = Worst case scenario, this is a 2-candle 123 through the Pivot, exiting the Triangle. Will they
now retest the base?

C = Retest skipped. Volume spike (pink arrow) blasts a large white candle, easing through the MidW.
We are pulled in early. At the close of the candle, consider advancing stop to Free Trade.

D = Volume drops. With appropriate risk-conservative fervor, call this small white candle a Second
White Closes above the MidW. Per our stop rules, we may now move the profit-locking stop under
the MidW, securing our profits.

E = Nervous stall gives way to a large white candle. Normal stop under the low leaves the position
in MPG violation. Mental stop at Giveback Level.

F = Large white candle through the Mid. Per our stop rules, we move the stop under the Mid.

When the next (red) mid-air Reversal candle retraces >62%, exit the position briskly.
+/- 3.25 points

We now have the third point/hit defining a Trend Channel (pale blue channel lines).

3 = Go back at least to the red Bear Dragonfly (purple arrow) to get a trend count.
This interesting Doji Double-Dragonfly Sandwich "P", bouncing off the Trend Channel Floor (pale
blue line), qualifies as a PMT "S" Signal at the MA.

* Red inverted (Bull) Dragonfly spins wheels, skidding to a halt.

* Momentum is zero, so the tape presents a tiny Doji star.

* Transition is complete with a white Bull Dragonfly.

* Both plungers pulled back.

* The MA is bowed.

Expecting great things, we'd like to enter on the breakout candle adjacent, but there is no Volume
confirmation.

G = Volume jumps to life (pink arrow), and we are pulled in on an extra-large white candle. At the
close of the candle our stop is advanced to Free Trade and a tik or two.

H = Another bit of a stall and a large white candle stretches to the R1. Position is in MPG violation.
Mental stop not only complies with the MPG rules, but also gives us better exit flexibility should the
R1 Resistance prove formidable. Since R1 coincides here with the intraday Trend Channel Ceiling
(pale blue line), anticipate a very likely entanglement.

Re-enforced R1 Resistance is indeed quite formidable. Two candles later, when the red Bear
Dragonfly spikes the R1 and retracts, we go flat. +/- 4.25 points

4 = A 123 through the R1.

J = Volume is up (pink arrow), and we enter on a healthy white candle. Worried about the muzzling
effect of the Trend Channel Ceiling (pale blue line).

K = A large white candle through the green LT Trend Channel Floor line. Per our rules, move the
profit-locking stop under the green line. White Spinning Top reads, "fading Momentum".

L = White candle puts position in MPG violation. No justification for moving the stop. Per the MPG
rules we exit. +/- 3.0 points

The intraday Trend Channel Ceiling tries to exert Resistance, but back inside the safety of the LT
Trend Channel, the BBs are feeling frisky. EOD Hiccup (plum lines) is on time. After taping the
classic "V" check mark, zips merrily north a half-dozen points for EOD close.

PERSPECTIVE
(Daily, bottom right chart)

Whether we drop the LT Channel Floor (green channel lines)
to the thrice-proven blue line or not, Thursdays giant
white day candle closes safely inside the Trend Channel.

Are we looking at a Double Bottom or a lower high? Were
it not now Friday, when anything can happen (surely lots
of traps) in the markets, a breather candle closing atop
the green Channel Floor would be in store.

BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Thursday's PMT Chart: