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,

Having first studied yesterday's Daily Pivot Magic Trading Journal,
the BBs chose our "rest before Wednesday's FOMC statement . . ."
option for Tuesday's trading model. We did score nicely on both
the upswing and the dive portions of Tuesday mornings Price Action,
but were singularly bored watching the afternoon sideways Volumeless
drift. Ultimately, we shut down early.

DON'T GET CAUGHT STANDING IN FRONT OF A FAST MOVING TRAIN!
FOMC AT 2:00!

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 28 January 2014

1 = Our trading session opens with an Anomaly Double Bottom (Overnight, bottom left chart) through the
Pivot. DVS (pink arrow) blasts a giant completion candle, pulling us in above the Mid. Advance the stop
under the Mid for reduced At Risk.

A = Black Volume Bar of Death (pink arrow) Doji. Was that DVS a warning? Prepare to SCRATCH! if the
next candle is red.

B = Large white candle through the LowW. Normal stop placement (under the LowW) leaves the position
in PMT Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

C = Large white candle. Once again, normal stop placement (under the low of the candle) leaves the
position in MPG violation. Mental stop at Giveback Level.

D = Volume droops a bit, and Price Action only tapes a small white candle. Although there is no other
sign of Momentum failure, the MPG rules say that when there is no opportunity to advance the stop as the
position goes deeper into MPG violation, we must exit. We are actually a bit pre-emptive, but do benefit
from positive slippage as the next giant white candle vainly lunges at the R1 on a Late-in-the-Move DVS.
+/- 5.50 points

2 = Doji Sandwich completes with a large red Marubozu. Troops don't rally into the hole punched by the
sumo candle. The move does not prove.

3 = We needed to think through the preceding trend to establish that it had not been voided before we call
this a 2-bar "P" Reversal off the R1.

E = We are pulled in on a giant DVS-driven (pink arrow) red candle. At the close of the candle we zip our
stop down to Free Trade and a few tiks.

F = Large red Bear Dragonfly. Per PMT rules, we move the stop above the high of the candle, locking in
another tik or two.

G = Price Action stalls briefly and then breaks vigorously south. Our position is in serious MPG violation.
Mental stop at Giveback Level.

H = We prepare to exit in case this large whitish Doji leads to a second, reversing, white candle. In fact,
a single DVS (pink arrow) plunges a final pre-lunchtime red candle vaguely through the Mid.

Should we consider that a tap on the Pivot and exit, or, observing that a normal stop placement (above the
LowW) will leave the position in MPG violation, place a mental stop at Giveback Level?

The 2.5 (Risk):1 (Reward) R:R ratio is skewed. Exit is the better choice, but alternately, when the next
candle bounces and shows serious white, Exit Now! 5.25-6.25 points, depending on your gut reflexes

4 = As we observed above, this 2-bar is in range of the Pivot.

J = Volume is still decent, so we enter on a white breakout candle. Initial stop advances under the LowW.

K = Large white candle. Per PMT stop rules, move the profit-locking stop under the low of the candle.

The next (red) candle is contained by the MA Support, just short of our stop.

L = Even if we don't exit on this mid-air Reversal, the sudden drop in Trading Interest/Volume, and the
inability of the Bulls to recover on the next (white) candle warn us out. +/- 1.50 points

Lunchtime Price Action drifts sideways, wafting vaguely towards the R1. Our only question is, "when do
we call it a day?" Surely by 2:30 the non-resumption of Trading Interest/Volume lets us shut down early.
Go find some kindness to do in the world, making the afternoon count for something!

Price Action continues to drift gently upward on lunchtime Volume levels, and EOD closes dully nose up
at the R1.

PERSPECTIVE
(Daily, bottom right chart)

Tuesday taped a fairly healthy white day candle breather.
Following this, with the FOMC statement coming on Wed.,
don't expect the BBs to try anything dynamic on Wedneday
morning.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: