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,

Tuesday made up for a couple of slow days in the e-mini.
We scored nicely on the morning dive, and took a hearty
bite out of the return run up later in the day. As you
will see below, much of the day's profitability resulted
from a couple of questionable/lucky decisions, but who
cares!

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 M4
Tuesday 25 March 2014

1 = Our session opens gap-up with an Anomaly 2-bar (Overnight, bottom left chart) off the R1. Move
never materializes.

2 = Without = 1 preceding, we probably would have been stumped by this 123 retest of R1.

A = As a large red candle breaks below the MA, we enter. Advance the stop above the MA.

B = Black Volume Bar of Death (pink arrow) Doji. In preparation (in case the next candle is white
signaling exit), move the stop to Free Trade.

C = Very large red candle puts our position in Pivot Magic Trading Maximum Profit Giveback (MPG)
violation. Mental stop at Giveback Level.

D = Another large red candle and our position returns to MPG violation. Mental stop at Giveback Level.

E = Many of us exit as the tail of this inverted white Dragonfly instantaneously spikes north.
+/-3.25 points

However, since 62% retrace is only about 1 point, most of us wait for the candle to close and hold
tight.

F = Large red candle continues the dive. With the position again in MPG violation, place a mental stop
at Giveback Level.

G = Small exhaustion gap and a large red candle. Looks like an opportunity to employ my convention
and slip the stop in the gap. Since the move is signaling exhaustion as we are approaching the nearby
(always considered hard/proven) Pivot, make that a mental stop.

H = Late-in-the-Move DVS exhausts Momentum with a red inverted (Bull) Dragonfly spiking the Pivot
and retracting. A Pivot Scalp Exit is signaled. +/- 7.75 points Nice run!

3 = We don't trust DVS-based (pink arrow) 2-candle Reversals for longevity.

4 = Volume (pink arrow) is strong behind this large white Bull Dragonfly "P" Signal, but the Pivot
Resistance blocks the run's progress.

5 = Another 2-bar off the Close/at the Pivot makes it a Double Bottom. Strong Signal combo, but it is
nonetheless DVS-driven and untrustworthy.

When Price Action breaks through on a 2-candle 123 (blue arrow), that's too many nice Signals to let
pass and we bravely enter.

J = No! Black Volume Bar of Death (pink arrow) Doji. Perhaps braving a lunchtime entry was not so
wise after all. Prepare to die!

K = Yes! The bulls recover, and a large white candle crosses the Mid. Per PMT stop rules, move the
profit-locking stop under the Mid/Free Trade and a tik.

L = Not wild about the elongated top wick on this large inverted white Dragonfly. Per our stop rules,
move the stop under the low of the candle.

Price Action stalls, but our stop goes unhit.

N = Though it offers no stop advantage, this candle does indicate that the Bulls are not prepared to
yield. Counting on the MA Support, we hold. If Price Action does not rebound off the elastic PL we
will go flat.

P = Large white candle failed test of MA lets us tighten our stop, moving it under the PL.

Q = Sudden DVS (pink arrow), and the bulls violently break free. Our position is in serious MPG
violation. Mental stop at Giveback Level.

R = Large white inverted Dragonfly suggests failing Momentum after the DVS. Per our stop rules,
move the profit-locking stop under the low of the candle, locking in nice profits.

S = Large white inverted Dragonfly. Per our stop rules, move the profit-locking stop under the low
of the candle. All these skid marks at 1:30 Reversal Time surely warn of an upcoming retracement.

Stall and then, when the Bulls don't recover two candles later, we go flat and run to the bank
+/-6.25 points

Price Action turns sideways now and the day runs out sliding along the MA to EOD close.

PERSPECTIVE
(Daily, bottom right chart)

Tuesday taped a healthy white day candle. The candle opened at the
dashed lavender line, seemingly establishing it as the new LT SW
Channel Floor. Rather narrow Channel; not likely to hold for long!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: