BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
Well, definitely called that wrong. (Blush!) Somewhat surprisingly,
there was no real Bear response
to two days in a row of rather weak Bull efforts. The Bulls, on the
other hand, clearly ruled on Thursday.
TGIF!!!
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
Thursday May 15, 2008
1 = Thursday opens at the Close with an Anomaly signal (Overnight,
bottom left chart). Although the white Bull Dragonfly kickoff might
have satisfied
our "pair of self-confirming signals" requirement for entry off the
Close, the Price Window to the (always considered proven) Pivot was
way too small
for even a PMT/Pivot Scalp entry.
2 = Same goes for this large 2-bar/DT Double bottom bounce off the
Close.
3 = J-hook is behind the Pivot, leaving enough Price Window for a
Pivot Scalp to the Close.
A = Pulled in immediately under the Pivot on a large red candle.
Initial stop should be advanced above the Pivot for reduced Undefended
At Risk.
B = Pivot retest and a failed test of the MA. Per our stop rules,
inch the profit-locking stop down a bit, above the MA.
C = Momentum skids to a stop with an inverted (Bull) red Dragonfly.
This candle puts our position in violation of the Pivot Magic Trading
Maximum Profit
Giveback rules. With not even a creative excuse to advance our stop,
the instant the next candle shows white, Exit Now! Scratch!!! +/-
1.25 points
4 = Reversal signal completes on the third candle, but it is out of
range of the Pivot. Too bad, because Volume confirms. (Wonder why
the BBs are not
going to lunch yet.) We wait.
Oddly late lunchtime drift, and sketchy Volume drag on interminably,
struggling with Resistance at the R1.
5 = What at first appears to be just another false attempt at the R1
proves three candles later (within our criterion), = D.
D = DVS (pink arrow) generates a large white candle pulling us in.
Initial stop advanced under the MA.
E = Failed test of MA. Per PMT stop rules, move profit-locking stop
up the extra tik (every little bit. . . ). BTW, this is a 123, so
take the opportunity to
add contracts.
Price Action turns sideways. As EOD Hiccup Danger Time approaches,
consider applying the PMT Scalp 3-5 stop rule and moving the profit-
locking stop
to "free trade" (good ole risk-conservative me!)
F = Finally! DVS (pink arrow) generates a failed test of MA, and the
Bulls resume the charge. Wary of EOD Hiccup, briskly move the profit-
locking stop
under the MA.
G = Breakaway gap and massive DVS (pink arrow) drives a giant white
candle through the High. Note that even if we move the profit-locking
stop under
the High, per our general stop rules, the position will still be in
violation of the Pivot Magic Trading Maximum Profit Giveback rules.
Mental stop at Giveback.
Still in EOD Hiccup Zone so be prepared for any sudden swings.
H = Healthy, but normal-sized, white candle through the HighW puts the
position back in Maximum Profit Giveback violation:
* With no excuse to advance the profit-locking stop (maybe could
stretch it and put it under the HighW) our rules say to exit.
* Add to that the fact that we are exactly at the second line of EOD
Hiccup Time.
* Next candle is a Higher-High-Turns-Red. Classic Exit Now!
Surely by the time that next candle shows red you exited with
alacrity!!! +/- 6.50 points
PERSPECTIVE
(Daily, bottom right chart)
It's difficult to position the dashed green line (Daily, Historical S/
R) exactly, but Thursday closes mighty close
to that Resistance level. Surely on Friday we will witness, at a
minimum, a violent stab at/through that objective!
As always, beware of traps on Friday!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Thursday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic051508.gif
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