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,

In spite of large-candle swings throughout the day, we
scored nicely on Thursday. Thanks to our risk-conservative
PMT Money Management rules, even the false starts paid off.
Frustrating, but nice (read: profitable) day in the e-mini.

BEWARE OF TRAPS 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 Z3
Thursday 03 October 2013

1 = Thursday morning opens with a Double Top Anomaly (Overnight, bottom left chart) off the Close.
We enter on the self-confirming 2-candle 123 through the Pivot (blue arrow). Initial stop advances
above the Pivot.

A = A large red candle forms a 123 kickoff through the LowW suggesting that we add contracts. Per
our PMT stop rules, move the profit-locking stop above the LowW.

B = Small gap and a disappointing red inverted (Bull) Dragonfly. This configuration invites us to
apply my convention. Move the security stop safely into the gap.

C = Late-in-the-Move DVS (pink arrow, suggests total exhaustion) plunges a giant red candle through
the S1. Our stop rules advise that we move the profit-locking stop above the S1.

The following candle is a large white Bull Dragonfly Reversal. Exit briskly. +/- 5.25 points

2 = DVS (pink arrow) drives a Reversal off the S1. We enter aggressively. Advance the stop above
the Low, locking in instant profits.

The next (large white) candle signals mid-air reversal. Sadly, that's an Exit Now! Signal.
+/- 1.50 points (with positive slippage on the following red candle)

Price Action travels sideways for a while, before finally plunging to test the S2 Support.

NOTE: ABS is a bit large today. To avoid getting stopped out
at every Price swing, expand the Exit, Stop, and Maximum Profit
Giveback (MPG) placements.

3 = A 2-candle 123 through the S2. Volume is high (unmarked) and we enter aggressively.

D = A 123 completes off the underside of S2. Not certain if this is a Twin Towers DVS (pink arrow),
we add contracts and simultaneously move our stop to Free Trade and a few tiks.

E = Looks average, but still we can call this a large red candle. For safety sake, move the
profit-locking stop above the high of the candle.

We are promptly stopped out on the next white candle. +/- 1.75 points

4 = Volume is down a bit behind this full-sized Double Bottom at the S2 Resistance. We hesitate.

F = Volume surges (pink arrow), and we enter with multiple contracts on this massive 123 breakout
through the S2. At the close of the Candle, move the stop to Free Trade and a couple of tiks.

G = After a close call from a long red Spinning Top, we call this a large white candle and move our
profit-locking stop under the low of the candle.

H = The MA holds, and our PMT stop rules advise us to move our profit-locking stop under this large
white. This is just about MPG Giveback Level, so make that a mental stop.

J = Late-in-the-Move DVS (pink arrow) blasts a large white candle through the S1. Although
penetration is of questionable depth, the LIM DVS suggests exhaustion, so move the profit-locking
stop under the S1.

The next candle is a red Bear Dragonfly, so, even before we are stopped out on the following candle,
we exit. +/- 6.75 points

Price Action turns sideways. Except for a noteworthy sudden dive and rebound at 2:20, Price Action
continues sideways along the S1 Resistance to EOD Hiccup.

Hard pressed to call this EOD Hiccup (plum lines) a classic "V" check mark. Price Action dives and
closes just above the S2 for EOD.

PERSPECTIVE
(Daily, bottom right chart)

Thursday taped a large red day candle. Looks like a
bearish gov't shut down breakout from a 123 off the
Historical S/R (lavender line). More to come?

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Thursday's PMT Chart: