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,

In spite of the long mid-day period of sideways trading,
cumulatively, we did OK on Wednesday. We took a couple
of small bites in the morning and one hearty taste out
of the massive afternoon run down (thanks to the BB's
lunchtime TELLS!)

Daytraders, Beware of Bears in the Woods Tomorrow?!?

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 26 February 2014

1 = Wednesday opens with a Multi-top Anomaly (2-Day 5-Min, bottom left chart) off the Close. We enter
aggressively as the large red candle crosses below the Pivot.

A = Add contracts, as a 2-candle 123 takes off from the Pivot. Per our stop rules, move the stop above
the Mid (or to Free Trade is even better).

B = Late-in-the-Move DVS (pink arrow) probably exhausts Momentum plunging a giant red candle toward
the S1. The position is in Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

White Spinning Top, and then a breakaway gap is enough to convince us to trigger our stop.
+/- 2.50 points

2 = Doji Sandwich/123 below is an inviting combo Signal.

C = As a 2-candle 123 off the Pivot rips through the Close and breaks out of the green fog, we enter
with multiple contracts.

D = This inverted white Dragonfly is not very large, but completing a 5 white candle run, the exhaustion
gap and the long top wick the tape seems rather precarious. This is an opportunity to apply my convention.
Move the stop safely into the gap.

E = Large, but wispy white inverted Dragonfly Doji makes it 6 white candles in a row. This thin line run
is pretty much exhausted. Per PMT stop rules, move the profit-locking stop under the low of the candle.

F = Black Volume Bar of Death (pink arrow) Doji. If the next candle is red it will also make it a >2 point
profit recoup. With a gap and three exhaustion candles in a row, the odds are so strong against
continuation that it is a "duh!" decision to exit immediately. +/- 1.50 point

Alternately, place a stop directly under the Doji and take your chances; giving back most of a point extra.

Price Action bounces rather vigorously for lunchtime sideways drift atop the Close, well into mid-afternoon.

NOTE: the series of TELLS (= X) telling Readers of the Tape
that the BBs want to go Bear after drinking their lunch.

3 = TTT (or FTT?) 123 at the Close. Volume booms (pink arrow). Trusting the TELLS, we heartily enter with
multiple contracts, as a giant red candle completes a 123 below the Close, and rips easily through the Pivot.
Advance the stop above the Mid/Free Trade.

G = Exhaustion (?) gap and a large red candle. No reason to fear (see the large top wick on a red bear-run
candle), but just to be sure, move the stop into the gap.

H = Large red candle. Normal stop above the high of the candle leaves our position in MPG violation. Make
that a mental stop.

J = Large white stall candle. As we prime our stop, we get a nice surprise! DVS (pink arrow) pumps a giant
red candle virtually to the S1, MPG violation. This surely exhausts the Momentum. Though the S1 Primary
Objective may well yet be achieved, the R:R is wrongly skewed. Experienced traders risk-conservatively exit.
Others might safely rely on the mental stop at Giveback Level to enable them to briskly execute a plan for
instant Pivot Scalp Exit.

4 = Even before the spike-through pulls back above the S1, this position is smoke! +/- 5.50 points
We don't trust DVS-driven (pink arrow) 2-candle Reversals for longevity. (It is just too big of a stretch
to call the gigantic white Spinning Top a Doji, for inclusion in a Doji Sandwich.)

The remainder of the day zigzags sideways, stitching the MA to EOD close.

PERSPECTIVE
(Daily, bottom right chart)

Wednesday taped a red Spinning Top Doji day candle, breathing once
again at Monday's Close. It is getting less and less clear what
will happen with the pending LT Sideways Channel we have been
anticipating. The tape looks set for a dip on Thursday. Probably
depends on how they massage the Jobless Claims numbers before
(misre)presenting them to the public.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: