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,

False breakout! We were a bit surprised when Tuesday
reversed and headed north. We did manage to hold on,
with some trepidation, to a most of the long run up
back up on Tuesday. Drank lots of Maalox, but paid
some bills.

Will Wednesday hold yet another surprise for us?

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
Tuesday 14 January 2014

Tuesday opens gap-up with a bounce off the Pivot Resistance.

1 = This Reversal is just in range of the Close, and Volume is reasonably supportive. The Price
Window to the proven Pivot is too small for entry however. No entry.

2 = A Bear 123 of the Pivot does not prove. Price Action changes direction, now taping a Bull 123
off the Pivot Support.

A = DVS (pink arrow) drives a giant white candle, pulling us in. At the close of the candle we
advance the stop under the Mid.

B = A brief stall, and a massive DVS (pink arrow) blasts a gigantic white candle free. Our position
is in serious Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

Price Action stalls and sags. Relying on the well proven MA Support, we nonetheless hover over
our mouse, ready to fire off the mental stop.

C = The onset of lunchtime Volume has us concerned, but the MA holds strong. We stretch it and
aggressively call this pair of white candles a breakout. Move the profit-locking stop under the MA.

D = Volume perks a bit, driving a white candle to break free of the long stall. Even though the
candle is not particularly large, this is discretionary trading. Move the stop under the low of the
candle.

E = DVS (pink arrow) probably exhausts Momentum generating a large white candle. The elongated
top wick doubles the exhausted Momentum reading of the tape. Normal stop placement (under the
low of the candle) leaves the position exhausted in MPG violation. Quickly establish a mental stop at
Giveback Level.

The next two candles complete a Doji Sandwich mid-air Reversal Signal. In light of all the exhaustion
indications, we exit briskly. +/- 6.75 points (We happily got a bit of positive slippage, as the Bulls
recovered just enough to complete a feeble assault on the R1.)

Lunchtime sideways drift resumes near the R1 Resistance.

3 = Solid bounce off the R1 Resistance, but with neither a preceding trend, nor aroused Trading
Interest/Volume, we are well advised to let it pass.

G = A pretty solid surge in Volume (pink oval) does little to drive Price Action. The sideways drift
resumes to an EOD close resting atop the R1.

PERSPECTIVE
(Daily, bottom chart)

Tuesday tapes a large white day candle, recouping virtually all
of Monday's giant red day candle. Price Action is back to the
preceding week's hover level.

Sure glad we are day traders and not position traders!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: