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,

Price Action was most vigorous on Wednesday, making for a
very demanding trading day! We scored quite nicely (read:
profitably), with only one minor setback.

Our risk-conservative Money Management rules kept us safe
through the lulls, as well as on the sidelines during the
FOMC hysteria wildness.

More bear hunting likely on Thursday.

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 19 February 2014

1 = Wednesday opens gap-down. We enter aggressively on an Anomaly (Overnight, bottom left chart)
2-bar through the S1.

A = As a giant white candle 123 kicks off the S1, we add contracts. Per PMT stop rules, move the
profit-locking stop under the Mid.

B = Price Action stalls atop the Pivot, in the green fog Ambush Zone, making us rather nervous.

White candle seems to break free of the stall. We risk-conservatively take the opportunity to inch
the stop up, under the Pivot.

Giant white candle (blue arrow) bounces off the MA and exits the fog. Our position is now in
Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

As the next (red Bull Dragonfly) retraces >2 points we exit. +/- 4.25 points

2 = We seem to have exited too soon, so we are looking to re-enter on this "S" 123 Continuation
Signal.

C = DVS (pink arrow) blasts a large white candle through the High, and gently through the R1. Since
it is already Giveback Level, we use a mental stop under the High.

D = Twin Towers (pink arrow) warns of a stall on the next candle, so we don't add contracts on this
2-candle 123 off the R1. We do, however advance our stop under the R1.

E = Large white inverted (Bear) Dragonfly stretches virtually to the R2. Looks like Momentum is
failing. Move a mental stop under the low of the candle (+/- Giveback Level).

3 = Red Bear Dragonfly advises us that we have probably gotten as close to the Primary Objective,
R2, as we are going to. R:R is bad. Exit. +/- 3.25 points

We enter the Reversal on a large red candle (blue arrow).

F = Don't much like that Doji, so we call this small red candle a failed MA test and move the
profit-locking stop above the MA. Since Momentum is questionable, make that a mental stop to enable
quick exit in case the R1 holds.

The next (white) candle taps on R1 and retracts. Pivot Scalp Exit. +/- 1.0 point

Price Action turns sideways, wrapped around the R1.

4 = Doji Sandwich 123 through the R1. Even toward the Close/Pivot, without Trading Interest/Volume
we are not interested.

G = Volume (pink arrow) jumps to life, and we enter on a giant red candle (lots of slippage). Our
stop advances above the Close as the candle closes slightly through the Pivot.

H = We almost exit on a DVS-driven White candle. Instead, we convert to a mental stop and wait to
see if the Pivot Resistance will hold.

When it does, we call this a "second red candle closes below the Pivot" and vigorously slide the stop
down, above the Pivot.
J = Volume is strong (pink arrow), so we add contracts on this 123 breakout. The position is in MPG
violation. We move a mental stop to Giveback Level. Since we are rapidly approaching the S1, this
gives us the added flexibility to exit briskly should the S1 support hold.

K = As the tail of a red Bull Dragonfly recoups >2 points, we exit. +/- 7.50 points

5 = Full Double Bottom off the S1. Lunchtime Volume forbids PMT entry. We pass.

As time for the FOMC minutes approaches, there's lots of sideways lunchtime trading at the Pivot.
Volume is at a whisper.

L = The minutes generate some hysteria, but Price Action soon settles atop the S1 Support.

5 = Nasty 123 at the S1.

N = Volume explodes (pink arrow), and we are pulled in on a giant red candle through the Low. Stop
advances above that PL, locking in a small instant profit.

P = Large red candle extends the dive. Twin Towers (pink arrow) indicates a stall coming. This
suggests that we need to prepare for a Pivot Scalp Exit. Since the position is in MPG violation, the
prescribed mental stop at Giveback affords us perfect double protection.

As the next (tiny Doji) candle spikes the S2 and retracts, we exit with great alacrity. +/- 4.0 points

The S2 holds briefly, giving way to the EOD Hiccup (plum lines). The Hiccup traces a classic "V" check
mark pattern, diving to an EOD close atop the S3.

PERSPECTIVE
(Daily, bottom right chart)

Finally, after 8 white candles in a row, the thin line trend
(green trend channel lines) topples. Wednesday taped a large
red day candle, fully outside the trend channel.

Thinking there'll be more bear follow-through on Thursday.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: