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,

Thursday taped a Surge-Slide Maneuver, sadly kicking
off without any Reversal Signal. We were forced to
agonize impotently until 10:30 Action Time, when we
took our one and only trade. Profited OK before the
Slide, which ran on into EOD. We needed to shut down
early on Thursday. When to do so was our biggest
question of the day.

TGIF!!!

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
Thursday 06 February 2014

Thursday morning opens gap-up at the R1. We sit painfully on the sidelines and watch an
almost uninterrupted 8-point run up to the R2.

1A 123 below the R2 breaks out with a -candle 123 above the PL.

A = Volume increases (pink arrow) to supportive levels, and we are pulled in on a large white
candle.

B = Large white inverted (Bear) Dragonfly suggests possible retest of R2. Move the stop to
Free Trade and a tik.

C = Large white candle puts our position into PMT Maximum Profit Giveback (MPG) violation.
Mental stop at Giveback Level.

D = Late-in-the-Move DVS (pink arrow) warns of exhaustion. In case we doubt that indicator,
the tape further presents a white inverted Dragonfly.

Per PMT stop rules we would like to move the profit-locking stop under the low of the candle.
That placement, however, is greater than both 2-point and 62% Retracement (including the
top wick). Instead, we use a mental stop at 2.25 points with the intent to jump ship at 63%
Retracement if necessary.

It was! +/-4.75 points (with slippage)

Price Action stalls and turns sideways for lunchtime drift mid-way in the R2-R3 channel.

2 = Volume does swell a tiny bit (pink arrow) but not nearly enough to warrant entry on this
2-bar, legally off the R2.

E = Many of us shut down early when the MA Support contained Price Action here.

The rest of us pull the plug later when the MA stalls the low-Volume Price Action a second
time (red arrow).

Price Action continues to slide sideways along the R3 Resistance to EOD close.

PERSPECTIVE
(Daily, bottom chart)

Thursday bounced off the Fibonacci 50% Retracement
Level (blue line) with a large white Marubozu day
candle. We always worry if the troops will rally
into the hole punched by one of these large sumo
candles.

Anyways, since the candle closed nose-up
at the Floor of the recently exited LT SW Channel
(lavender channel lines), which is also a recurring
Historical S/R, there is much to indicate resistance
to re-entry of the Channel.

Following such a large run up, Friday is likely to
swing, but is, nevertheless, also likely to close as a
breather day.

BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Thursday's PMT Chart: