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,

Not quite the LT Trend Channel Floor test we were
anticipating, but Wednesday was bearish overall,
making some headway in that direction.

We scored one nice trade out of Wednesday's
Plunge-Slide Maneuver. Opening Range Volume was
healthier than recent days', but mostly we just
sat and watched.

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
Wednesday 24 July 2013

1 = Wednesday morning opens gap-up with an Anomaly 2-bar (Overnight, bottom left chart) through the
R1. Opening Range Volume seems back up to normal levels, so though the Price Window to the Pivot is
marginal, experienced Readers of the Tape posit that if we enter aggressively, the extra pull of the
opening gap just below will make this a good bet for Pivot penetration and profit. Advance the stop
above the R1 for well controlled At Risk.

A = DVS (unmarked) drives the second candle of a 2-candle 123 south. We add contracts, and move
the stop to Free Trade and a tik. Nice.

B = Healthy red candle crosses the Mid and stops flush with the Pivot. Per our PMT stop rules, move
the profit-locking stop above the Mid. We are assuming that the move will continue to close the
opening gap, but nevertheless, we still might want to make that a mental stop in case the Pivot does
hold.

C = Lots of Bull Volume (pink arrow) only generates a small white Spinning Top Doji, which is
generally a good sign, but we stay alert. The 123 through the Pivot dives through the Close, but
Price Action stops in the green fog, so we can't add contracts (perhaps we may add a few when the
following small red Bear Dragonfly 123 exits the Ambush Zone, blue arrow). Move the stop above the
Close.

D = Late-in-the-Move DVS (pink arrow) indicates exhaustion. As the large candle spikes the S1 and
retracts, we take the signaled Pivot Scalp exit. +/- 6.75 points

The bears continue to press, but S1 Support holds strong against the assault.

Lunchtime sideways drift starts a bit early, and Price Action gently twines around the S1 for the
next two hours.

2 = Mid-lunch 123. Away from the Pivot-Close, this doesn't look very inviting. The single DVS
(pink arrow) behind the breakout suggests that the move will achieve the S2, but due to DVS
exhaustion penetration is unlikely. Pass.

The day now turns sideways near the S2, struggling to cross back above.

3 = Since we don't trust DVS-based 2-candle Signals for longevity there isn't much we can do about
this 2-bar. Our PMT entry clock runs out, and though the EOD offload of positions does push Price
Action north through the S2, mostly it just slides feebly sideways to the close.

PERSPECTIVE
(Daily, bottom right chart)

Not overly dynamic, Wednesday's red Spinning Top day
candle did stretch much of the way to the anticipated
LT Trend Channel Floor (green channel lines) test.
One more red candle on Thursday should do it!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: