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,
Monday wasn't exactly a breather day, but the overall Price gain was
not too grand either. We all took a decent bite out of the run up;
whereas, the advanced, experienced PMTer daytraders got a very hearty
bite. Yum!
Market may still pause to breathe on Tuesday.
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
Monday 14 October 2013
Monday morning opens gap-down at the S1. For the first 2 hours of trading Price Action bounces between
the (demoted) S1 and the LT SW Channel Ceiling (Lavender line).
1 = At 11:30 price Action finally breaks out of the Channel and tapes a 123 below, and a 123 above (blue
arrow) the Pivot. Volume is strong (pink arrow), so we enter aggressively.
A = Extreme (for today) DVS (pink arrow) drives a large white candle. Per PMT stop rules we should move
the stop under the low of the candle. The probable exhaustion expressed by the DVS, however, prompts us
to move the stop to Free Trade and a tik or two.
B = This white candle puts our position in Maximum Profit Giveback (MPG) violation. With no real excuse
to move the stop tighter, application of our MPG rules say to exit. +/- 2 points
2 = Price Action returns to retest the Pivot with a 2-bar "P" Signal. Volume perks up a bit, and with
the pull of the gap to the Close on our side, we enter on the next candle.
C = This could be a Late-in-the-Move DVS (pink arrow) driving a failed test of the MA. Per our stop
rules, move the profit-locking stop under the MA.
Volume dies off, and price Action wobbles sideways. Will the MA Support hold?
D = The MA does hold. We call this a breakout from the S-stall. Move the profit-locking stop up, under
the MA.
E = Small white Marubozu candle puts our position in MPG violation. Normally, we would exit, but the
Volume burst makes advanced traders optimistic of achieving the Primary Objective, closing the gap.
Some beginners exit, but experience advises advanced traders to place a mental stop at Giveback Level.
F = Wild DVS (pink arrow) blasts a giant white candle through the Close. Penetration is insufficient to
move the stop under the Close. Since we are in MPG violation as well, we opt for a mental stop at
Giveback level.
NOTE: Many of the experienced traders who held through = E
might have reasonably exited when Price Action turned sideways
following = F, +/-4.75.
G = Second healthy white close above the PL. Per our stop rules, move the profit-locking stop under the
Close.
Really don't like hanging out in the green fog. When the next (red) candle reverses we thought to exit.
Since we have a hard stop in place, there is nothing to gain by a Cancel-Replace. We accept our fate.
H = Surprise! The Close holds strong, and a 2:00 DVS (pink arrow) pumps a giant white Marubozu out of
the fog. Position is now in MPG violation. Mental stop to Giveback Level.
J = Giant Black Volume Bar of Death (pink arrow) Doji should really be sufficient on its own to signal
exit, but we are permitted to wait to see if the next candle shows red before jumping ship.
It does. We do. +/- 8 points
Price Action turns sideways, and swings up and down between the Fog and the R1 to EOD close.
PERSPECTIVE
(Daily, bottom chart)
Monday's large white day candle in fact dipped back into the
LT SW Channel (lavender channel lines) overnight, but exited
for most of the day session.
Good chance of a breather on Tuesday.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Monday's PMT Chart:
