BS"D

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

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

The LT Fibonacci 50% Retracement Level held on Thursday.
Both the day trading session and the 24-hour session tapes
showed Doji candles. During the morning, we had a couple
of SCRATCHES! and a couple of nice trade. The afternoon,
however, traded sideways with no appreciable Volume, making
Wednesday a long tedious day for risk-conservative e-Mini
PMT day traders.

Enjoy and be well,

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

E-mini ES Z3
Wednesday 05 February 2014

1 = Wednesday opens with an Anomaly (Overnight, bottom left chart) 2-bar off the Pivot, dipping
through the Close.

A = As a giant red candle exits the green fog, we are pulled in. This candle also completes a 123 off
the Close, so we can enter with multiple contracts. At the close of the candle, move stop to Free Trade
and a few tiks.

Stopped out on the next (white) candle. Arrrggghhh!

2 = Humongous 123 retest of the Pivot rebounds through the Close. We are pulled in as it exits the
green fog and crosses the MA. Advance the stop above the MA.

NOTE: Again today, the ABS is quite bloated. To avoid getting
stopped out prematurely on every Price Swing, expand the stop,
exit, and Maximum Profit Giveback (MPG) placements.

B = DVS (pink arrow) blasts a giant red candle. The candle crosses below the Fibonacci 50%
Retracement Level (blue line), taps on the S1, and retracts, signaling a Pivot Scalp Exit.
+/- 4.25 points

3 = Large red Spinning Top completes a 123 of the S1 Support.

C = A 2-candle 123 lets us enter this giant red candle breakout below the S1 with multiple contracts.
The candle ultimately closes in MPG violation. By then, the Volume histogram shows a Late-in-the-Move
DVS (pink arrow) exhaustion warning, so we are double-happy to place a mental stop at Giveback Level.

As soon the next (white) candle retraces > 2 points, expecting an S1 retest, we exit. No reason to give
it all back! 1.50-point-gain SCRATCH!

Price Action retest of the Fib 50% fails, as does the S1 Support retest.

4 = Reversal at the S1, and a weak 123 kickoff attempt (blue arrow). No Volume for entry.

D = DVS (pink arrow) combines with the rubber band to the Close/Pivot and pumps a giant white candle
back above the Fib Retracement (blue line). Early on, we exercise the = 4 potential for multiple contract
entry. With the candle closing in MPG violation, change to a mental stop at Giveback Level.

E = Stall resolves with a 2-point white candle. Normal stop placement, per our stop rules, leaves us in
MPG violation. Move a mental profit-locking stop to Giveback Level.

F = DVS (pink arrow) drives a large white candle through the Close. The top wick spikes the Pivot and
retracts, a Pivot Scalp Exit Signal. Positive slippage helps. +/- 7 points

Lunchtime sideways drift exerts. Price Action first slides, and then bounces, along the Pivot Support.

EOD Hiccup (plum lines) comes at the end of Hiccup Time Zone. The Hiccup traces a classic "V" check
mark pattern, diving to an EOD close back at yesterday's Close, for a totally Doji day.

PERSPECTIVE
(Daily, bottom right chart)

Wednesday taped a Doji day candle, again breathing, but
this time closing slightly up from the Historical S/R
(lavender line), back at the Fibonacci 50% Retracement
Level (blue line).

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: