BS"D
Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
******************************
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
Getting the Retracement we anticipated in yesterday's PMTJournal
PERSPECTIVE, we were very lucky on both of our trades on Monday.
Scary retests surprisingly failed both times, and we wound up
with a couple of nice scores!
Bears on Tuesday?
Enjoy and be well,
******************************
Pivot Magic Trading
First Rule:
"Any time you don't know what is happening, get out!"
******************************
E-mini ES Z3
Monday morning opens gap-up with an Anomaly (Overnight, bottom left chart) 2-bar "P" Reversal off the R2.
Volume (pink arrow) is massive, and we enter aggressively. At the close of the giant red candle drop the
stop above the R1.
A = Scary 123 retest of R1 Support-turned-Resistance breaks south on a DVS (pink arrow). We even add
contracts. Our position is now in PMT Maximum Profit Giveback (MPG) violation. With the Pivot and Close
threateningly nearby, we are double glad to place a mental stop Giveback Level.
B = Twin Towers (pink arrow) indicates a stall/retrace is coming on the next candle, so when this red
inverted (Bull) Dragonfly spikes the Close and retract, a Pivot Scalp exit signal, we exit with alacrity!
+/- 4.25 points
2 = A 2-bar Reversal off the Pivot/Close. We examine our options. The Price Window to the proven R1 is
too small for our entry criterion. Pass.
Volume drops off early, and Price Action drifts sideways along the R1 till mid afternoon.
3 = Volume comes to life (pink arrow) with this 123 off the R1. The Price Window to the proven Close/Pivot
is too small for entry. Sigh.
4 = A nice 123 "S" Signal through the Close. What will happen at the Pivot crossing?
C = Volume increases (pink arrow), and a large red (Bull Dragonfly) candle crosses below the Pivot pulling
us in. Advance the stop above the Pivot for added security. This was, BTW, a 2-candle 123, permitting us
to enter with multiple contracts.
D = A 123 retest (we add more contracts) and a giant red candle plunges south. Reposition the stop at
Free Trade and a couple of tiks. Nice!
E = Late-in-the-Move DVS (pink arrow) suggests exhaustion, as another giant red candle crosses well below
the S1. Per PMT stop rules, move the profit-locking stop above the S1.
The next (large white) candle closing 0.50 points short of our stop signals a Reversal. No time for
Cancel-Replace, we moan and let our position die a natural death.
F = Whoa! The reversal surprises us and turns around for a Bear 123 through the S1. We add contracts.
Normal stop placement leaves the position in MPG violation, so we convert to a mental stop (no need to
suffer a Cancel-Replace decision if things reverse again).
G = White-tipped Doji gives us pause. The giant DVS (pink arrow) required to generate this stall candle
suggests one more bear push. Exit (+/- 4.25), or move the stop above the high of the candle, your
discretion.
H = If you lucked out and took the "move your stop" option, exit briskly as the next candle stretches to
tap on the S2 and retracts. +/- 6.50 points
Price Action turns sideways and closes atop the S1 at EOD.
PERSPECTIVE
(Daily, bottom right chart)
Monday taped a small red Spinning Top day candle adjacent
to the Ceiling of the new Bull Trend Channel (green channel
lines).
Not clear if this is a stall or the start of a Trend Floor
test on Tuesday.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Monday's PMT Chart:
