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,
Daytrading Thursday's long run up encountered difficulty at the
Pivot/Close crossing. Nevertheless, we did manage one nice trade
and are content.
Bears on Friday?!?
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 13 February 2014
1 = Our trading session opens gap-down with an Anomaly (Overnight, bottom left chart) Bull 2-bar at the
S2 Pivot Level.
A = As a 2-candle 123 crosses the S2, we are pulled in with multiple contracts.
B = Though we do add contracts on this white Bull Dragonfly 123 kickoff from the S2, we are nervous for
the move to finally take off. Move the stop to Free Trade and a tik.
C = Late-in-the-Move DVS (unmarked) suggests Momentum exhaustion. Our stop gets moved under the
low of the candle, but in light of the probable exhaustion, and the fact that the stop is now +/- at Maximum
Profit Giveback (MPG) Level, we should opt for a mental stop.
D = The exhaustion is expressed first in a small white Spinning Top Doji and then with a Black Volume
Bar of Death (pink arrow) Doji. Move a mental stop under the Doji with plans to exit if the next candle
shows red.
E = Nice surprise! Bulls recover with a giant white candle completing a 123 (so we add yet more
contracts) through the S1. Our position is in MPG violation. Mental stop at Giveback Level.
F = This DVS (Twin Towers?) surely exhausts remaining Momentum driving a very large white candle
toward the Pivot/Close. Even were we not now in MPG violation, the long top wick and Twin Towers
exhaustion symptoms would suggest a mental stop, at Giveback Level.
When the next (red) candle retraces (including the top wick of = F) >2 points, we respond to the Exit
Now! Signal. +/- 6.25 points
2 = 123 Continuation off the Pivot.
G = Volume (pink arrow) is up. The Signal was a bit mushy, and we're not really sure if this is a last
false burst before lunchtime or a kickoff. Risk-conservatively, we elect to pass.
H = Next candle is a Doji, and the Volume is a Twin Towers (pink arrow) indicating a stall/retest is
coming next.
3 = Lunchtime sideways drift bounces off the Pivot. No Volume, no trade.
4 = Price Action wafts up to test the R1 with a 123. Though the Volume is temporarily up, the timing is
off. We let the signal pass.
X = The repeating blasts of Bull volume (blue arrows) are likely a TELL; suggesting that the BBs want to
eventually try for another run up.
The run up is brief. Price Action once again turns sideways above the R1, drifting to EOD close atop
that PL.
PERSPECTIVE
(Daily, bottom right chart)
Thursday taped a very large white Bull Dragonfly day candle.
Ironically, all that Price Action actually only achieved little
more than breather-day headway.
The current LT Trend (green channel lines) is extremely steep.
A thin line trend of 6 white candles in a row is certain to
topple soon. In fact, though it may only be a breather, the
trend seems to be turning already (blue channel lines). Good
chance of a Bear Retracement on Friday.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Thursday's PMT Chart:
