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,
Though Tuesday's Bear day wasn't exactly the dive we
prepared for, we did score nicely. Run down probably
will continue on Wednesday.
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
Tuesday 16 July 2013
1 = Day opens with an Anomaly Double Top (Overnight, bottom left chart, blue arrow) at the Close.
Move kicks off with a 2-candle 123 (orange arrow) exiting the fog and crossing the Pivot, where we
enter with multiple contracts. Stop advances above the Pivot for reduced At Risk.
A = Another 2-candle 123, and a large red candle crosses the Mid. Add contracts, and move the
stop above the Mid.
B = A pair of Black Volume Bar of Death Dojis (pink arrow). Change to mental stop on the first in
preparation, just in case the next candle is white. We exit on the next (white Bear Dragonfly)
candle. +/-1.0 point
2 = DT Multi-top Pivot retest doesn't prove.
3 = Large red candle completes a 123 off the Pivot. No Volume, so, even though this is a lovely
red candle, no aggressive entry.
C = Volume comes to life (pink arrow), and we enter on a large red candle easing through the S1.
Move the stop to Free Trade and a couple of tiks.
D = Second red candle closes below the S1. Per our stop rules, move the profit-locking stop above
the S1. This candle is also a 2-candle 123, so consider adding contracts, surely on the next candle.
E = Large red Bear Dragonfly through the Low. Per PMT stop rules, move the profit-locking stop
above the Low.
F = Black Volume Bar of Death (pink arrow) Doji. Prepare to exit if next candle is white.
G = A taste of white, but the Momentum continues with a large (NOTE: ABS is a bit small today) red
candle. Rules say to move the profit-locking stop above the high of the candle. Normal placement
leaves the position in Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.
H = Single white candle stall gives way to a large red candle. Again normal placement leaves the
position in MPG violation. Mental stop at Giveback Level. Prepare for a bounce at S2 Support.
F = Very Late-in-the-Move DVS (pink arrow) blasts a giant red candle through the S2. Per our stop
rules, move the profit-locking stop above the S2.
4 = When this Reversal crosses above the S2, exit briskly. +/- 5.25 points
There is insufficient Volume to confirm a Bull entry here.
5 = Small "P" Reversal at the MA (blue arrow) qualifies as a PMT "S" Signal, but with no Volume,
during lunchtime, we pass.
A small 123 above, and a small 123 below make this S2 crossover a bit interesting.
K = DVS (pink arrow) blinds many of us, and we enter on a large red Marubozu. As always we are
concerned whether the troops will rally into the hole punched by one of these sumo candles. Zip
the stop down to Free Trade, and exit as the next candle (white Bull Dragonfly) stretches within
range of the S3 and reverses. +/- 1.25 points
6 = Double Bottom off the S3 crosses the S2 on a 123 (blue arrow), but without any Volume
confirmation we pass.
7 = Too late for us to consider entry, Price Action reverses at the S2. Instead this turns into an
early EOD Hiccup (plum lines). The "V" check mark pattern springs back to the Low for EOD close.
PERSPECTIVE
(Daily, bottom right chart)
Tuesday's red day candle is not exactly a "dive to retest
the Channel Floor"; more like a breather or a stall-reversal,
precursor to a plunge.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Tuesday's PMT Chart:
