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,
Hope you had a nice family Thanksgivukkah gathering.
We did. Lots of kids ate gallons of chili and tons
of latkes.
Wednesday was a gratifying day to return to the e-mini!
Scored a few rather nice trades (read: profits).
No idea what's in store for tomorrow, so stay sharp and
prepare for anything!
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 04 December 2013
1 = Wednesday opens gap-down with an Anomaly 2-bar off the S1/LT Trend Channel Floor (green
line/Low). We don't trust DVS-based 2-candle signals for longevity, and this dud reversal
demonstrates why.
2 = A 123 retest with just enough room to the Pivot for entry.
A = We enter aggressively, as Volume comes to life (pink arrow). After the candle rips through both
the Close and Pivot, closing the gap, advance the stop under the Pivot for a nicely locked-in instant
profit.
B = Large white candle puts our position in Maximum Profit Giveback (MPG) violation. Mental stop
at Giveback Level.
C = Once again, a large white candle puts our position in MPG violation. Mental stop at Giveback
Level.
The next (Doji) candle spikes the R1 and retracts. That's a Pivot Scalp Exit Signal.
+/- 9.00 points
Now that's how to start the day!
3 = Full Double Top off the R1.
D = We enter below the MA, with stop advancing above the MA.
E = Not sure what is going on with this red Spinning Top Doji. Advance the stop to Free Trade
and a tik.
F = Average-size red candle puts our position in MPG violation. Mental stop at Giveback Level.
G = Lunchtime Volume (pink arrow) is all that supports this healthy white Bull Dragonfly. With the
MA Resistance above limiting the move, we elect to wait out the S-trap. Since our mental stop is
right nearby, we don't even have to adjust the stop for our NEW PULL-BACK LOCK-IN S-TRAP
EVASION MANEUVER.
The stall goes on seemingly forever, but the MA holds strong.
G = Finally, a single DVS (pink arrow) plunges a giant red candle through the Pivot, spiking the
Close, and retracting for a Pivot Scalp Exit Signal. +/- 5.25 points
4 = The move continues with a 123 off the Close. We don't really care to enter away from the
Close during lunchtime just because of one Volume burst. Pass.
5 = Failed TTT of the Close clears the MA Support. It's already 1:00, so we consider this entry.
J = Volume increases, and we enter on a large red candle. At the close of the candle we play safe
and move the stop to Free Trade and a tik.
K = Large red candle through the Low. Per PMT stop rules, move the profit-locking stop above the
green line.
L = DVS (pink arrow) plunges a giant red candle through the S1. That's a 2-candle 123, so feel free
to add contracts. The candle puts our position in MPG violation. Mental stop at Giveback Level.
N = Another large red candle again puts our position in MPG violation. Mental stop at Giveback Level.
P = Massive Black Volume Bar of Death (pink arrow) Doji spikes deeply through the S2 and retracts,
signaling our exit. +/- 9.25 points
6 = We consider entry on this Doji Sandwich, but Volume and direction are very confused. The signal
does not prove in time.
7 = A weak 123 reentry into the Trend Channel would be more enticing if Volume (pink arrow) weren't
actually diminishing.
EOD Hiccup (plum lines) is on time, with a small, but classic "V" check mark, and the trading day
closes back at the Close.
PERSPECTIVE
(Daily, bottom right chart)
Wednesday tapes a large Doji day candle, spiking the
LT Trend Channel Floor (green channel lines), but
closing inside the Channel.
Will the Floor hold again tomorrow?
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Wednesday's PMT Chart:
