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,
Wednesday played out just as we projected in yesterday's
PMTJournal PERSPECTIVE, "Expecting Wednesday to pause to
breathe before continuing south."
We got a few nibbles and SCRATCHES, and one decent bite
out of the rather narrow-range day.
Be prepared for some potentially vigorous action on
Thursday!
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 28 August 2013
1 = Normally, we are a bit hesitant to enter an Anomaly (Overnight, bottom left chart)
Signal off the Close. This time however, a giant white Bull Dragonfly rips through the
Close, exits the green fog Ambush Zone on massive Opening Range Volume, and crosses
above the Fibonacci 50% Retracement Level (blue line).
A = We are pulled in on a large white Marubozu (full-bodied candle without wicks).
Never certain if the troops will rally into the hole punched by one of these sumo
candles, added to the Twin Towers stall/retest indicator (pink arrow), at the close of
the candle we risk-conservatively move the stop to Free Trade and a few tiks.
The next two candles are red. The second is a Bear Dragonfly mid-air reversal. We
anticipate a retest. Exit Now! SCRATCH! +/- 1 point
2 = The Close/blue line retest bounces powerfully, and we enter aggressively above the
blue line. Advance the stop under the MA.
B = Large white candle through the LowW. Per our stop rules, move the profit-locking
stop under the LowW.
As the tail of the next candle (red Bull Dragonfly) spikes south we are stopped out.
+/- 1.75 points
3 = Price Action tapes a sine wave about the Pivot before bouncing with a 2-bar
completing on the 3rd candle. Volume (pink arrow) jumps, and we are pulled in instantly
above the MA. Advance stop under MA.
C = Brief stall and Volume again jumps (pink arrow), driving a large white candle. Our
position is now in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. Mental
stop at Giveback Level.
D = Not sure if that is a Twin Towers or not (pink arrow). Per our stop rules, move the
profit-locking stop under the low of the candle.
E = S-trap resolves, and we inch the profit-locking stop a drop tighter, under the MA.
F = Not quite a large white candle, but nevertheless it seems prudent to move the
profit-locking stop under the low of the candle.
Price Action again stalls and the MA Support holds.
G = A small white candle puts our position in MPG violation. With not even a creative
excuse to advance out stop, our MPG rules tell us to exit immediately. +/- 4.25 points
Price action continues to a virtual tap on the R1. Lunchtime drift finally turns
sideways. At 2:00, out of range of the R1, Price Action dives to retest the Pivot.
4 = The Pivot holds, and the tape presents a large white Bull Dragonfly "P" Reversal
Signal.
H = This large white candle breakout is right on time to associate with the "P" Reversal.
Volume, however, is still at lunchtime lows, so we shut down instead of entering.
EOD Hiccup (plum lines) is on time, and tapes a classic "V" check mark pattern as Price
Action dives to EOD close through the Pivot. (Still searching for a safe method to trade
the EOD Hiccup. Sigh! May have to settle for a high risk: high reward auxiliary trade.
Though this is not really the way of PMT trading, massive EOD moves are sooooo tempting.)
PERSPECTIVE
(Daily, bottom right chart)
Wednesday's Doji day candle stopped to breathe right at the
Fib 50% Retracement Level. Just a little bit of bad news
in the Funnymentals and the 50% Retracement becomes a
Reversal through the Fib 62% Level.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Wednesday's PMT Chart:
