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,

We got a tasty bite out of the Surge portion of Wednesday's
Surge-Slide Maneuver. Our Risk-conservative Money Management
Rules left us with one breakeven SCRATCH! and several hours
of boredom on the sidelines.

Prepared for anything on Thursday!

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
Wednesday 16 October 2013

1 = Wednesday morning session opens gap-up with a Double Bottom Anomaly (Overnight,
bottom left chart) through the R1.

A = DVS (pink arrow) drives a giant white breakout candle through the High, pulling us in.

At the close of the candle we would normally advance our stop under the High, locking in
immediate profits; however, that stop placement leaves our position on Pivot Magic Trading
Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

B = Twin Towers DVS (pink arrow) blasts a giant white candle to spike the R2 and retract,
a Pivot Scalp Exit Signal. +/- 7.75 points

2 = Double Top rebound off the R2 does not materialize.

3 = Third Time Through (TTT) succeeds, with a Volume-confirmed (pink arrow) 123 through
the R2. We enter aggressively.

C = Late-in-the-Move DVS (pink arrow) only results in a smallish white Spinning Top Doji.
Assuming Momentum is depleted, advance the stop to Free Trade and a couple of tiks.

When, two candles later, the tape presents a large red candle, recouping >2 points
(including the top wick of the preceding white Bear Dragonfly), we go flat/SCRATCH!
+/- 0.75 points

The hard R2 Resistance-turned-Support contains the sideways drift from lunchtime all the
way to EOD close.

PERSPECTIVE
(Daily, bottom right chart)

We weren't clear whether to expect a dip, a bounce,
or a breather on Wednesday. Wednesday actually taped
a large white day candle 123 bouncing off the
Historical S/R (plum oval), which BTW is also the
recently exited LT Sideways Channel Ceiling (lavender
dashed line).

Tend to expect a sag/breather on Thursday, but with
all the confusion in Washington, anything may happen.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: