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,
In yesterday's Pivot Magic Trading Journal, PERSPECTIVE section
we projected, "Friday should be a breather day." Lots of range
and lots of traps, but the day was ultimately a perfect Doji
breather day.
We scooped in a fistful of points, but swallowed several painful
SCRATCHES (and lots of Maalox) to do so.
See you Monday!
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
Friday 21 June 2013
Friday morning opens gap-up just above the Pivot.
1 = A 123 second attempt to close the gap. Volume is strong (pink arrow), and we enter aggressively
as the giant red candle clears the open of the white Bull Dragonfly (back 2 candles). Advance the
initial stop above the Pivot to reduce At Risk.
A = Large red Bear Dragonfly taps a 123 and dips below the MA. It seems prudent to advance the stop
to Free Trade and a tik or two.
Next (white) candle takes us out at the stop.
NOTE: Again today the ABS is extremely large. To avoid getting taken out at every price swing and
Friday trap, expand the stop, exit, and Maximum Profit Giveback (MPG) placement.
2 = Another 123, this time off the underside of the Pivot.
B = With just enough Price Window to the Close, we enter on this red candle. Nervous from our
previous attempt, we advance the initial stop above the high of the candle.
C = Large red Spinning Top. Feel safer with the stop moving to Free Trade and a couple of points.
D = Tail of inverted (Bull) red Dragonfly spikes the Close and retracts. That is a Pivot Scalp Exit
Now! Signal. +/- 3.75 points
E = Large red candle completes a 123 below, following a 123 above (= D) the Close. Too bad we exited.
Re enter aggressively as the candle exits the fog. In fact, enter with multiple contracts (2 Signals!)
F = A Late-in-the-Move DVS (pink arrow) suggests failing Momentum, as does the red Spinning Top Doji.
Per our stop rules, move the stop above the High of the candle (or better yet to Free Trade and a
couple of tiks).
G = Brakes are applied, and the tape presents another red Doji with long skid marks. Move the
profit-locking stop above the high of the candle, only to be taken out by the next (white candle).
3 = Counting = G we have a preceding trend, making this a 2-bar through the Close.
H = A large red Bear Dragonfly 123 breakout. Friday, per usual, is full of traps, so we play it safe
and advance the stop above the MA.
The next candle, a giant white Doji Spinning Top, recoups a number of points and takes us out at
the stop.
This is quite perplexing. Overall, this giant white candle turns out to be only a stall, contained
by the MA. With one other large white candle interrupting the flow, the run continues massively to
a resounding halt at the S1.
4 = Decent Volume (pink arrow) confirms this Double Bottom bounce off the S1 Support.
J = We are pulled in on a giant white candle through the LowM. At the close of the candle move the
stop under the LowM, locking in instant profits. At the same time, we note a potential Twin Towers
(pink arrow) stall/sag/retrace indicator. Thus, we are not too surprised when another Friday trap
takes us out at our stop two candles later.
5 = A slightly higher low 2-bar Reversal, in range of the S1.
K = Single red candle stall, and the move breaks out, pulled by the rubber band to the Close. We
enter above the MA.
L = Volume expands, blasting a giant white candle through the LowM and Low. Per PMT stop rules,
move the profit-locking stop under the Low.
N = Late-in-the-Move DVS (pink arrow) drives another giant white candle closer to our Primary
Objective, the Close. The position is clearly in MPG violation. Mental stop at (expanded)
Giveback Level.
P = A healthy red Bull Dragonfly stall almost scares us out before Volume returns (pink arrow) and
blasts yet another monster white candle through the Close. Per our stop rules, move the
profit-locking stop under the Close.
Oops! Not exactly unexpectedly, we get taken out on the next (red) candle. +/- 8.25 points
6 = Price Action struggles at the Close, taping a full scale Double Top. Volume has drooped to
lunchtime levels (pink arrow), and, per our rules, we pass on the lunchtime breakout away from the
Close.
7 = A 2-bar through the Close never proves.
8 = The 2-bar converts to a Bull 123 with a large white Bull Dragonfly kickoff (blue arrow).
Volume (Trading Interest, pink arrow) is still at lunchtime levels, forcing us to pass.
Price Action climbs steadily to test the Pivot. With a Double Top, EOD Hiccup (plum lines) forms
the classic "V" check mark formation, diving back to the Close for EOD.
PERSPECTIVE
(Daily, bottom chart)
Much ado about nothing; Friday tapes a rather
large Doji day candle, leaving Price Action
breathing in place.
No idea what this portends for Monday!
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
CLICK HERE: More About Pivot Point Daytrading
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Friday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic062113.gif
Friday's PMT Chart:
