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,

Lots of action (read: lots of Maalox) on Tuesday.
We scored nicely, but we surely didn't get any
free rides!

Good chance of re-entry into the LT Sideways
Channel on Wednesday. That or a whopping bounce,
ultimately amounting to a breather. Stay tuned.

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
Tuesday 15 October 2013

Morning session opens gap-down with a double crossing of the Pivot.

1 = We enter aggressively, as a 123 off the Pivot completes and traverses above the HighW.

A = This small white candle with a long top wick is not enough to warrant stop advancement,
but nevertheless, let's get our stop to Free Trade and a couple of tiks.

As the next candle tapes a large red Bear Dragonfly, we SCRATCH! briskly.

2 = Red Bear Dragonfly "P" Signal in range of the Close.

B = DVS (pink arrow) plunges a giant red candle, pulling us in. Advance the stop above
the MA.

Two small red stalling candles suggest we advance our stop to Free Trade.

C = Red candle taps on the Pivot and retracts. We Pivot Scalp exit. +/- 3 points

3 = Double Bottom off the Pivot Support. We enter aggressively on the breakout above the
HighW.

Massive Price Action zips up to tap on the Close and retract. We Pivot Scalp exit, with
some slippage, for a most brief, single candle trade! +/- 2.50 points

4 = Nice 2-bar Reversal at the Close (blue arrow) kicks off with a large red Bear Dragonfly
123 just exiting the green fog.

D = We are pulled in on a large red candle. At the close of the candle move the stop to
Free Trade and a tik.

E = Failed test of MA. Per our stop rules, move the profit-locking stop above the MA,
locking in a few more tiks.

F = Large red candle. Per PMT stop rules, move the profit-locking stop above the high of
the candle, which is Maximum Profit Giveback Level, so make that a mental stop.

When the next candle retraces >2 points (including the bottom wick of = F) we exit.
+/- 1 point

Volume drops off, and Price Action goes into lunchtime sideways drift mode.

5 = Following a mid-air 2-bar reversal (blue arrow), Price Action tapes a 123 through the
Pivot. Volume is booming (pink arrow), and we enter aggressively on the giant red
completion candle. At the close of the candle, advance the stop to Free Trade ad a tik
or two.

G = Top wick of this small gap and red Doji almost hits our stop. Not sure what to make
of it, so we apply my convention and move the stop into the gap for Money Managerment
security.

H = Another red Doji stall, and a Late-in-the-Move DVS (pink arrow) exhausts Momentum
plunging a gigantic red candle to spike the S1 (and briefly reenter the LT SW Channel,
lavender line) and retract. We Pivot Scalp exit, again nasty slippage. +/- 5.50 points

6 = Very stringy Double Bottom off the S1.

J = We enter aggressively on this white completion candle, only to be disappointed as it
converts to an inverted (Bear) Dragonfly. Prepare to SCRATCH!

K = Weak Volume boosts a strangely large white candle. Quickly advance the stop under the
low of the candle to reduce At Risk.

Red Spinning Top Doji stall at the MA. We again get ready to SCRATCH!

L = Late in the move DVS (pink arrow, sort of a Twin Towers?) blasts one final white candle
(some of us SCRATCH! on the down-thrust) north to tap on the Pivot and retract (or at least
close enough to signal Pivot Scalp exit). +/- 3.75 points Tough trade!

Price Action bounces undecidedly off the Pivot Support-turned-Resistance and, too late for
us to enter, dives to close EOD atop the S1/LT SW Channel Ceiling.

PERSPECTIVE
(Daily, bottom chart)

Tuesday taped a healthy red candle, running back
to test the LT SW Channel Ceiling (lavender channel
lines). I think the set of candles (circled) can
be collectively construed as the breather we expected!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: