BS"D

Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
******************************

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning and a good week,

Massive plunge in the e-mini! Never know what to expect on a Friday!

Although we did intermittently ride the long run down for a decent
cumulative profit, the Price Swings and Traps scared us out repeatedly.

Follow-through Monday coming?

Enjoy and be well,

******************************
Pivot Magic Trading
First Rule:
"Any time you don't know what is happening, get out!"
******************************

E-mini ES Z3
Friday 24 January 2014

Friday morning opens gap-down, well below the LT SW Channel Floor (green line), and continues
south to test the S2 Support.

1 = S2 Support holds, taping 2-bar "P" Reversal. We don't' trust DVS-driven (pink arrow) 2-candle
signals for longevity. Pass.

Our lack of faith turns out to be well founded, as the MA Resistance holds and Price Action heads
back to retest the S2.

2 = Powerful 123 through the S2. Volume is massive (pink arrow) permitting us to enter aggressively.

A = Single-candle stall/retest yields to a large red candle through the MidM. Move the profit-locking
stop above the MidM.

NOTE: ABS is already quit bloated today. To avoid getting stopped
out at every Price swing, expand the stop, exit, and Maximum Profit
Giveback (MPG) placements.

In light of the above NOTE, make that a mental stop.

B = Black Volume Bar of Death (pink arrow) Doji. Our stop is behind the MidM, so we can safely
weather an S-trap stall.

C = MA holds, and the tape presents a giant red breakout candle, easing vaguely through the S3.
Position is in MPG violation. Mental stop at Giveback Level, prepared for a bounce off S3.

D = A 123 through the S3. We add contracts. We also call this a second close below the S3. Our
stop rules invite us to move the profit-locking stop above the S3.

E = Large red candle. Per our stop rules, move the profit-locking stop above the high of the candle
(mental stop?).

3 = "Probably a Reversal Signal" becomes "Surely a Reversal Signal" on the next white candle and we
are out. +/-6.75 points

Price Action levels out for lunchtime sideways drift along the S3/MA.

4 = A 123 off the underside of the S3.
F = Volume expands (pink arrow), and we enter below the MA. At the close of the candle move the stop
to Free Trade and a tik or two.

C = Large red candle. Per PMT stop rules, move the profit-locking stop above the high of the candle.

H = This looks like a stall. Since the candle puts us into MPG violation, protect with a mental stop
at Giveback Level.

Bears don't recover, and we go flat. +/- 3.50 points

5 = Once again the MA Resistance appears to hold, taping a "P" Signal, which therefore qualifies as a
PMT "S" Signal. No Trading Interest/Volume.

J = Volume (pink arrow) jumps to life and we are pulled in, below the MA, on the last possible breakout
candle from the MA Reversal signal. After we enter the candle turns into a disappointing red inverted
(Bull) Dragonfly.

K = Once again the MA Resistance contains Price Action. Volume swells (pink arrow), and the tape
displays a large red candle.

L = Another disappointing red inverted Dragonfly, suggesting that we get our stop to Free Trade and a
couple of tiks.

N = Not too encouraging. Let's be a bit creative. Call this a large red candle and drop the
profit-locking stop above the high of the candle.

When Price Action heads back for yet another MA test, with EOD Hiccup coming, we decide to dump this
weak position. +/-1.50 points

EOD Hiccup (plum lines) is right on time with a classic "V" check mark pattern. Rather than reversing,
the Hiccup plunges Price Action deeper, with EOD closing well below the S3 and MA.

PERSPECTIVE
(Daily, bottom chart)

Friday taped a gigantic red day candle exiting the LT SW
Channel Floor (green channel lines) on a Third Time Through
(TTT).

Although a breather day usually follows such a mammoth
candle, this daylong plunge suggests we may have a Follow
Through Monday.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Friday's PMT Chart: