BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
Nice long ride on Wednesday, with a second chance entry for those
missing the first opportunity.
Thursday proposes to be a day full of swings and frustration, so be
just a bit strict about following
the letter of the law, PMT rules.
Be well,
=] ;-)>
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BS"D
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Wednesday May 07, 2008
[SNIP]
4 = Volume has resumed (pink arrow), as the tape displays a reversal
off the Pivot. This signal proves nicely, pulling us in.
A = Slight breakaway gap, and DVS Volume drives a large red candle
through the Mid. Per our PMT stop rules, move profit locking stop
above the Mid.
And the position is promptly profitable. Nice!
Seems that this dip was an early/pre-emptive breakout. Someone gave
away the plan. PMT Tape Readers call that a TELL. After a brief
flurry, the
BBs seem to lose interest and return to drink another martini.
B = Failed test of MA, for an opportunity to move our stop just a bit
tighter, above the MA.
C = Another failed test of MA. Again, move the stop above the MA,
securing just a little more profit.
D = Small breakaway gap and a large red candle to the S1. Rules say
to move the profit-locking stop above the high of the candle, but my
personal
habit is to move it into the gap.
E = Giant DVS (pink arrow) drives a giant red candle for a 2-candle
123 of the S1. This is a second chance entry for those on the
sidelines, and a most
inviting opportunity for the rest of us to add contracts.
The position is, of course, now in violation of the Pivot Magic
Trading Maximum Profit Giveback rules, so place a mental stop at
Giveback level.
F = Twin Towers (pink arrow) warns of an imminent stall/sag. The long
lower wick likewise is a "skidding to a stop" symptom. Per our stop
rules, move
profit-locking stop above the high of the candle, and prepare to exit.
Another skidding, red, inverted (Bull) Dragonfly. Although it feels
small, the candle is in fact overall more than 2 points in size. PMT
stop rules permit
us to move the profit-locking stop securely above the high of the
candle.
G = Another skidding bottom wick on this large red candle. Move the
profit-locking stop above the high of the candle. Momentum is surely
gone now!
H = DVS (pink arrow) and a large red candle crosses the Low,
misleading us into thinking the stall is now resolved. This further
entices us to move the
profit-locking stop above the Low.
At least we weren't suckered into a trap, as the BBs reverse to retest
Support-turned-Resistance at the Low. We were, however, taken out at
our stop
before the plunge resumed. +/- 13 points
[SNIP]
PERSPECTIVE
(Daily, bottom chart)
Wednesday's Price Action recouped all of Tuesday's gains, falling just
short of a retest of the Historical S/R (green line).
Surely, even should the Bulls rally and once again assault the next
higher S/R level (dashed green line), on Thursday we
will get at least a tap on that level. More likely a tap and a
breather, setting up a wild ride, full of traps, for Friday.
So, what's new?!?
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Wednesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic050708.gif
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