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,

The week-long breathing market broke loose on Monday with a
large-range bear assault. We scored nicely, making up for
the dull week of waiting.

May well be trading follow through bear Momentum on Tuesday
(See PERSPECTIVE, below). Stay sharp!

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
Monday 13 January 2014

Monday morning opens gap-down at the Pivot and trades sideways in the Pivot-Close channel for
the next two and a half hours. At noon, Price Action finally breaks below the Pivot.

1 = Pivot Support-turned-Resistance 123 test.

A = Volume (pink arrow) swells, and we are pulled in on a breakaway gap and giant red candle.
At the close of the candle, move the stop to Free Trade and a few tiks.

B = Large red candle slams to a halt at the S1. Normal stop placement leaves our position in
Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

NOTE: ABS is bloated, so to avoid constantly getting
stopped out at every swing, consider expanding stop,
exit, and MPG placements.

C = Price Action oozes through the S1 and kicks off with a 123. Add contracts. Our stop rules
tell us to move the profit-locking stop safely above the S1.

D = DVS (pink arrow) plunges a large red candle through the Low. Per PMT stop rules, move the
profit-locking stop above the Low.
E = Large red candle puts our position in MPG violation. Mental stop at Giveback Level. Twin
Towers (pink arrow) indicates a stall/sag/reverse is coming next.

F = This white candle is just large enough to be considered a 2-bar Reversal; however, the
diminished Volume and elongated top wick suggest that it is only a stall. With our mental stop
nearby, we elect to wait and see.

G = Large red breakout candle once again puts our position in MPG violation. Mental stop at
Giveback Level.

This time a strong white reversal candle comes next for a mid-air Reversal.

When the following candle hits Giveback Level we need to consider using our NEW PULL-BACK
LOCK-IN S-TRAP EVASION MANEUVER.

The At Risk seems a bit more than we feel comfortable with. Also, re-evaluating = G we conclude
that it was (relatively, with today's ABS) close enough to be considered a tap and retract.
Exit now. +/- 8.0 points

The MA holds, disproving our risk-conservative decision. Oh well.

2 = Volume expands (pink arrow), and we enter aggressively on a 2-candle 123 through the S2. We
advance our stop above the LowW, only to get taken out for a loss on the next white retest candle.

Booo!
3 = The retest turns into a 123, and we enter on the completion candle with our stop advancing
above the LowW.

J = Large red candle taps on the S3 and retracts, signaling a Pivot Scalp Exit. +/- 2.0 points

4 = Normally, we might hesitate to enter beyond the S3 extreme, but this run down is particularly
powerful. Volume is massive. Just as our PMT entry clock runs out, as Price Action tapes a 123
above and a 2-candle 123 below the S3, we enter aggressively (with multiple contracts).

At the close of the candle our position is already in MPG violation (nice!). Mental stop at
Giveback Level.

K = Large red inverted (Bull) Dragonfly suggests exhaustion. Twin Towers (pink arrow) indicates a
stall/reversal is coming next. Per our stop rules, move the profit-locking stop above the high of
the candle. Make that a mental stop and prepare to exit if >2.50 points (bloated ABS) are recouped
(including the bottom wick of = K).

L = Price Action stalls seemingly forever, but finally breaks south with a giant red Marubozu
(full-bodied candle without wicks). Again our position is in MPG violation. Though the MA has
held, this time we are not at all certain that the troops will rally into the hole punched by the
red sumo candle. Mental stop at Giveback Level, but we DON'T feel committed to give it all back!

N = Large red candle. Per our stop rules, move the profit-locking stop above the high of the
candle; only to get stopped out on the next giant white reversal candle. +/- 3.50 points

EOD Hiccup (plum lines) is right on time, and tapes a classic "V" check mark pattern. The rebound
is not extra-ordinary, but does retrace a good 5 points to EOD close.

PERSPECTIVE
(Daily, bottom chart)

Monday's Price Action broke free from last weeks hovering in
place and taped a giant red day candle. The long run down
continued to EOD, so instead of the usual breather day
following a giant assault, we might expect a follow through
on Tuesday.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Monday's PMT Chart: