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,

There were quite a number of starts and stops during Thursday's
massive E-mini dive. We were in and out repeatedly, but managed
to take several nice bites from the run.

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 07 November 2013

Thursday morning opens up at the R1, wobbles a bit, and heads back to close the gap.

1 = The run down continues with a 123, completing with a powerful red candle through the Close and
Pivot. We enter aggressively below the Pivot.

A = Large red inverted (Bull) Dragonfly tapes a 2-candle 123 of the LT SW Channel Ceiling (green line).
We move the profit-locking stop above the green line and add contracts.

B = Large red candle through the S1. Per our stop rules, move the profit-locking stop above the S1;
only to get stopped out 2 candles later. +/- 3.25 points

2 = Powerful Volume (pink arrow), and we enter aggressively on a giant red candle. At the close of
the candle our position is in PMT Maximum Profit Giveback (MPG) violation. Since volume turns out to
be a DVS warning of exhaustion, we are double happy to place a mental stop at Giveback Level.

C = Black Volume Bar of Death (pink arrow) Doji. Prepare to pull the trigger if the next candle
shows white.

It does. +/- 2.0 points

3 = When this 2-bar tapes, we enter below the MA . Advance the stop above the MA.

D = Close call. Normal stop, inched tighter above the MA, leaves the position in MPG violation.
Mental stop at Giveback Level.

E = Large red Bear Dragonfly, and our position is again in MPG violation. Mental stop at Giveback
Level.

F = Two-candle 123 through the S2. We add contracts and drop the stop above the S2. Since that
is Giveback Level, make it a mental stop.

4 = The next (white) candle tapes a 2-bar "P" Signal. We exit as the candle retraces >62%.
+/- 4.25 points

G = Volume is strong (pink arrow). As this move breaks through the S2, we are pulled in. Advance
the stop under the S2 for reduced At Risk.

H = Small looking, but almost 2-point white Bull Dragonfly/Failed test of MA. Per our stop rules,
move the profit-locking stop under the MA.

J = Volume is still strong (pink arrow), but the candles have become a bit diminished. Let's take
this opportunity to move the stop to Free Trade and a couple of tiks. Exhale.

L = Another average-sized white candle puts our position in MPG violation. That's 7 white candles
in a row. Failure is coming soon. With no excuse to advance our stop, the MPG rules tell us to
exit. Positive slippage! +/- 3.50 points

5 = Volume drops to lunchtime levels, suggesting that we pass on this 2-bar away from the
Pivot/Close.

6 = Once the run takes off, Price Action continues to dip through the S2. Due to lack of trading
interest/Volume we elect to pass on this lunchtime 2-candle 123.

7 = A sudden huge DVS (pink arrow) blasts a giant red 123 completion candle through the S3/LT SW
Channel Floor. A one-off DVS is never very inviting, especially for an entry beyond the S3 extreme
PL. Pass.

8 = Rather small (for today) red Bear Dragonfly. We would normally pass, except that the next red
candle, a 2-candle 123, confirms.

N = When the MA exerts, we enter on this red candle with multiple contracts (double signal).
Advance the stop above the MA for controlled At Risk.

P = Large red Bear Dragonfly makes it a second red candle closes below the LowW. Move the stop
above the LowW, locking in profits.

S = Seventh red candle in a row and a Late-in-the-Move DVS (pink arrow) join to warn that the
Momentum is due to fail. With our position in MPG violation, place a mental stop at Giveback Level.

When the either of the next two white candles retraces >62% we exit briskly. +/- 2.25 points

Price Action turns sideways and peters out by EOD close.

PERSPECTIVE
(Daily, bottom chart)

Thursday's giant red day candle exited the LT Sideways Trend
Channel Floor (green channel lines). Our anticipated collapse
may be under way now. Stay alert.

BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Thursday's PMT Chart: