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,
The main run down of Monday's Slide-Plunge Maneuver started mid air,
forcing us to stand by and watch. We did squeeze out a few points,
nicely more than just enough to cover our expenses for the day. Got
a few interesting twists to discuss today.
Tuesday?
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 U3
Monday 17 June 2013
1 = Monday morning opens gap-up with a very interesting (discretionary) Anomaly trade. Just before
the open, the overnight trading tapes a 2-bar Reversal (Overnight, bottom left chart, blue arrow).
At the open (Overnight, bottom left chart, orange arrow), a 2-candle 123 breaks out from the LT
Trend Channel Floor (green line). Volume is huge (pink arrow) and we enter aggressively. At the
close of the giant white candle our position is already in Maximum Profit Giveback (MPG) violation.
Mental stop at Giveback Level.
A = Large white Spinning Top. Per our stop rules, move the profit-locking stop under the low of
the candle.
B = Large white Bull Dragonfly through the High. Per PMT stop rules, move the profit-locking stop
under the High.
C = Large white inverted (Bear) Dragonfly. The elongated wick signals failing Momentum. Briskly
move the profit-locking stop under the low of the candle.
D = Small Doji stall candle. Not enough Volume to make this a Black Volume Bar of Death, but enough
to warn of a stall/sag coming. We exit when the next candle completes the mid-air Doji Sandwich
Reversal Signal. +/- 5.0 points
Price Action turns sideways for the next hour, and slowly wafts north to test the R2.
2 = Powerful 2-bar Reversal off the R2. Volume isn't much, but this is a Bear move, which doesn't
require strong Volume per our criteria, AND it is headed in the direction of the Pivot/Close pull.
Might even elect to enter aggressively.
E = Small breakaway gap, and the rest of us are pulled in on a small red candle.
F = Failed test of MA. Since the candles are so small we are getting a bit nervous. Move the stop
above the MA.
G = A large red candle puts our position in MPG violation. Mental stop at Giveback Level.
The next (white) candle retraces >62%. We exit. +/- 1.50 points
On very low Volume, lunchtime trading drifts sideways into the early afternoon. At 2:00 Volume
suddenly booms, and Price Action dives violently to test the green line. No signal, so we are
forced to helplessly watch the plunge from the bench. Sigh.
3 = R1 gets double Bull Dragonfly spiked, and Price Action bounces to tape a nice 123 "S" Signal at
the R1.
H = DVS (pink arrow) blasts a giant red candle breakout, pulling us in. The breakout also qualifies
as a 2-candle 123, so we are encouraged to enter with multiple contracts. At the close of the candle
the position is instantly in MPG violation. Mental stop at Giveback Level.
J = Large red Spinning Top through the Mid. Per PMT stop rules, move the profit-locking stop above
the Mid. Actually, following this stall candle, and with the Primary Objective, the (always
considered proven) Pivot, so nearby, consider using a mental stop to prepare for quick exit at the
Pivot.
The next candle (Black Volume Bar of Death Doji) spikes to tap on the Pivot and retracts. That's the
Pivot Scalp Exit Now! Signal we were anticipating. +/- 4.25 points
4 = Our entry clock is just about to run out as the Doji Sandwich completes with a large white Bull
Dragonfly. Volume is strong (pink arrow). We enter aggressively above the Mid. Advance the stop
under the Mid for controlled At Risk.
K = Large white Bull Dragonfly, but per the rules that doesn't affect our stop placement. It does
seem wise, however, to move the stop to Free Trade and a couple of tiks.
Stop taken out on the next (large red) candle.
The Reversal turns out to be an S-trap. Price Action continues to climb through the R1, and
re-enters the Trend Channel, without us!
Retest of the green line, and Monday's EOD closes a few points into the LT Trend Channel.
PERSPECTIVE
(Daily, bottom right chart)
Monday's large white breather day candle managed to inch back into
the LT Trend Channel (green channel lines). The tape seems to be
suggesting a Bull follow through on Tuesday.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Monday's PMT Chart:
