BS"D

Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
******************************

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning and a good week,

Friday taped a Surge-Slide Maneuver. We scored
(read: profit) nicely, but did eat at least one
bad tasting SCRATCH!

Following two monster candle days, Monday is
likely to take a breather, or even dip a bit.
Stay sharp.

Enjoy and be well,

******************************
Pivot Magic Trading
First Rule:
"Any time you don't know what is happening, get out!"
******************************

E-mini ES Z3
Friday 11 October 2013

1 = Friday morning opens with an Anomaly (2-day, bottom left chart) 2-bar through the Close
(no green fog inside the LT SW Channel, lavender lines).

A = 2-candle 123 breakout pulls us in with multiple contracts.

B = White Bull Dragonfly/failed test of MA. Per our stop rules, move the stop under the MA.

C = Another white Bull Dragonfly is followed by a Late-in-the-Move DVS (pink arrow) blasting
a giant white candle. Exhaustion has been signaled, and the position is in Maximum Profit
Giveback (MPG) violation. Mental stop at Giveback Level, but remember, we are not committed
to giving it all back.

Either of the next two Bear Dragonfly candles tapping the lavender line might signal Pivot
Scalp exit, especially following the Late-in-the-Move DVS. Together, they are surely a Pivot
Scalp exit Signal. +/- 5.50 points

2 = Reversal off the LT SW Channel Ceiling, might even call it a Doji Sandwich. PMT rules
suggest we enter with multiple contracts on the red Bear Dragonfly kickoff (blue arrow).

D = Drat! A Black Volume Bar of Death (pink arrow) Doji. Change to a mental stop in
preparation for rapid exit in case the next candle shows white. It does. SCRATCTH!

Turns out to be an S-trap, and the Price Action runs back down to retest the Close.

3 = Volume (pink arrow) is rather weak behind this 2-bar. Pass.

Price Action stalls for quite some time before Volume resumes, driving trading up, exiting
the Channel, and testing the R1.

4 = A 123 below, and a 123 above (blue arrow) the R1. Volume (pink arrow) is very strong.
We enter with multiple contracts.

E = A just barely-large white candle permits us to advance the stop under the low of the
candle.

F = Large white candle. Once again our stop rules tell us to move the profit-locking stop
under the low of the candle.

G = Already not very excited by all the elongated top wicks, a Black Volume Bar of Death
(pink arrow) Doji truly gets our attention. Prepare to exit on red.

H = Small white candle puts our position in MPG violation. With no excuse to tighten our
stop, we follow the rules and exit. (All the preceding stall symptoms made this an easy
choice.) +/- 3.25 points

Volume dies off, and lunchtime sideways drift ensues.

We shut down early, but EOD Hiccup (plum lines) taped a classic "V" check mark and Price
Action soared as the BBs offloaded their positions.

PERSPECTIVE
(Daily, bottom right chart)
Somewhat surprisingly, Friday taped a large white day candle,
and Price Action exited the LT SW Channel (lavender channel
lines). Didn't get one on Friday, so we're still expecting
a breather on Monday.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Friday's PMT Chart: