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,
As we expected in yesterday's PMTJournal, we did get more
vigorous Price Action on Thursday. Overall however, there
was little net Price change.
We scored nicely on the run up, but spent much of the day
watching sideways drift.
Be prepared for anything on Friday!
TGIF!!!
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
Thursday 29 August 2013
1 = Morning session opens at the Fib 50% Retracement Level with an Anomaly (Overnight, bottom
left chart) Double Bottom/2-bar completing at the Pivot/Close.
A = We enter as Price Action exits the green fog Ambush Zone. Initial stop advances under the
Pivot/Close.
B = Large white candle. Per PMT stop rules, move the profit-locking stop under the low of the
candle/MA.
C = Not quite a large white candle, but the elongated top wick, suggesting failing Momentum,
entices us to move the profit-locking stop under the low of the candle.
D = Large white candle puts our position in Pivot Magic Trading Maximum Profit Giveback (MPG)
violation. Mental stop at Giveback Level.
E = Brief but scary stall breaks north with a large white candle. Per our stop rules, move
the profit-locking stop under the low of the candle.
F = Large white candle stretches to a halt at the R1. Position is in MPG violation. Mental
stop at Giveback Level also will serve us well if the R1 holds (quick exit, i.e. no time
consuming Cancel-Replace needed).
Tiny Doji spikes the R1 and retracts, signaling a Pivot Scalp Exit Now! +/- 5.75 points
2 = Doji Sandwich Reversal off the R1. Volume dies, and the move doesn't take off.
3 = Solid 123 at the R1.
G = DVS (pink arrow) pumps a giant white candle through the R1, pulling us in. This is also
a 2-candle 123, so we enter with multiple contracts. At the close of the candle, move the
stop to Free Trade and a few tiks.
H = Twin Towers generates a small gap and a large white candle. This is a good spot to apply
my convention; move the stop into the gap.
Price Action stalls for quite some time, but when the Bear DVS (= X) only generates a Spinning
Top stall candle we know we are likely to be safe waiting it out.
J = The stall breakout doesn't really make any headway.
K = This white inverted (Bear) Dragonfly breakout is only a little better. It does let us get
our stop closer to the action. Per our rules, move the profit-locking stop under the MA.
L = Just as lunchtime is due to start, the tape flashes us a Black Volume Bar of Death (pink
arrow) Doji. Prepare for a brisk exit in case the next candle shows red by changing to a
mental stop.
Next (tiny) candle goes red, and we exit our position briskly. +/- 3.50 points
Lunchtime sideways drift ensues.
4 = A 2-bar "P" Signal at the MA completes on the 3rd candle (blue line). The fact that it is
a lower high (lavender line) qualifies this as a PMT "S" continuation Signal. Just wish there
were some Trading interest/Volume.
N = Lovely. Volume cones to life (pink arrow), and since we are heading toward the Close/Pivot
with the R1 Support unproven, we enter below the MA. At the close of the candle, move the stop
to Free Trade and a tik.
P = Black Volume Bar of Death (pink arrow) generates a small Doji that spikes to the R1 and
retracts, signaling (too early) a Pivot Scalp Exit Now! +/- 1.50 points
5 = S1 Support holds for a Double Bottom formation, but the move never proves.
Well after our PMT entry clock runs out, Price Action dips half way back to the Close, and there
it dribbles out to EOD close.
PERSPECTIVE
(Daily, bottom right chart)
Thursday taped a large white inverted Dragonfly day candle
that closed back at the Fibonacci 50%Retracement Level,
making it another breather day. Two breather days in a
row, both with nose down at the 50% Fib Retracement Level.
Things don't look promising for the Bulls.
BEWARE OF TRAPS ON FRIDAY!
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Thursday's PMT Chart:
