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Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Wednesday morning was very slow, exactly as we anticipated
in yesterday's Daily Pivot Magic Trading Journal, PERSPECTIVE:
"Following this [Tuesday], with the FOMC statement coming on
Wed., don't expect the BBs to try anything dynamic on Wed.
morning."

FOMC hysteria mixed things up a bit with the usual wild swings.
We did take two OK trades in the late afternoon, plus one
lightening-quick stop-out SCRATCH!

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 29 January 2014

Morning session opens gap-down at the S2 and eases north.

1 = A very weak preceding trend leads to a 2-bar Reversal off the S2. Volume has dropped considerably
(pink arrow), and the move struggles to take off, without us!

2 = Second bounce off the S1 Resistance is a Doji Sandwich. Volume (pink arrow) has dropped to
lunchtime levels, so we pass.

Price Action ping-pongs gently in the S1-S2 channel leading up to the FOMC statement at 2:00. Not
wishing to get caught standing in front of a fast moving train, we observe from a distance.

A = For no apparent reason, the market responds with the usual FOMC hysteria, high Volume (pink arrow)
and Price Swings. We know to wait out the wild swings.

3 = This Signal is still part of the wait-and-see portion of the FOMC hysteria readjustment.
DO NO ENTER!

4=A nice 2-bar through the S3.

B=Volume is strong (pink arrow), and once this large white candle kicks off the S3, we enter. BTW, this
is a 2-candle 123 kickoff, inviting us to enter with multiple contracts. By the close of the candle,
vaguely through the S2, the position is already in Pivot Magic Trading Maximum Profit Giveback (MPG)
violation. Mental stop at Giveback Level.

C=We add more contracts as this large white candle does a 2-candle 123 off the S2/MA. At the close of
the candle the position is again in MPG violation. Mental stop at Giveback Level.

Woops! As the next (white?) candle retests the MA, our exit reflexes are tested. We exit at Giveback,
but get slipped a bit. +/- 4.25 points

5=A large Doji Sandwich at the S2.

D=A 2-candle 123 breakout pulls us in with multiple contracts.

E=DVS (pink arrow) suggests exhaustion, as this giant red candle plunges to slam into the hard S3 Support.
Position is in MPG violation, calling for a mental stop at Giveback Level. Use this stop to exit briskly
if the S3 continues to hold, and Price Action bounces with a white candle.

Duh! We exit on the next (white Bull Dragonfly candle. +/- 2.25 points

6=Volume (pink arrow) strengthens, and we enter aggressively as this 123 crosses the S3. Wary of swings
today, and wary of trading beyond the S3 Extreme PL, at the close of the candle we move our stop to Free
Trade and a tik. SCRATCH!

Ultimately, the S3 holds, and Price Action unsuccessfully re-assaults the S2, where the day closes EOD.

PERSPECTIVE
(Daily, bottom chart)

Historical S/R (green line) held back Wednesday's
large red day candle from extending the plunge.
Looking left, across time we might consider this
a potential TTT.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: