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Commodity and Futures - Physical commodity and financial futures markets.
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Posted by Asher on May 30, 2008, 9:32 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning ,
Well, we called it again in yesterday's PERSPECTIVE:
". . . Wednesday's white Bull Dragonfly day candle implies that the
Bulls aren't done yet, and that they
will now mount an assault on the solid green line of Historical S/R.
Rather doubt they'll have much
success overcoming Resistance there . . ."
TGIF!!!
Be well,
=] ;-)>
******************************
E-mini
Thursday May 29, 2008
Thursday day session opens at the Close and then stitches in and out
of the "green fog".
1 = A Double-decker Doji Sandwich/sling-shot of the MA (blue arrow).
Not enough confirmation to convince us to abandon our self-confirming
pair of signals requirement for an entry at the Close.
Powerful 123 makes it a pair. Volume is strong (pink arrow),
confirming the signal.
A = Pulled in on a large white Bull Dragonfly (a good sign) through
the High and off the MA. Aggressively advance the initial stop under
the High
for well-controlled At Risk.
B = Very large white candle puts our position in violation of the
Pivot Magic Trading Maximum Profit Giveback rules. Mental stop at
Giveback level.
Large white inverted (Bear, blue arrow) Dragonfly and we are again in
Maximum Profit Giveback violation. Per our PMT stop rules, move the
profit-locking stop under the low of the candle.
NOTE: ABS is bloated today so it is advisable to expand the Giveback
amount and to increase the stop
placement spacing. This will avoid getting stopped out at every
adjustment.
C = Second healthy white candle closes above the R1. Per our stop
rules, move the profit-locking stop a bit tighter, under the R1.
R1 Support holds as we move into lunchtime drift.
D = Failed test of MA. PMT stop rules say to move the profit-locking
stop under the MA.
E = DVS (pink arrow) drives a mini-breakaway gap, and Price Action
runs up to test the solid green line of Historical S/R. Call this a
large white candle,
and move the profit-locking stop under the low of the candle.
F = The next candle is nominally a Higher-High-Turns-Red, Exit Now!?
(+/- 6 points ); however, the new high was only 0.5 points higher
(lower than
we generally require), and the strong Bear Volume didn't really move
Price Action very seriously. With our stop safely nearby, experienced
traders
may well have decided to hold, an equally good call (a bit less risk-
conservative, but still not overtly dangerous).
G = Failed test of MA. DVS (pink arrow) generates a single large
white candle closing just short of the R2. Our position is again in
violation of Maximum
Profit Giveback rules. Mental stop at Giveback level.
H = Twin Towers drives a large white candle through the R2. That
tells us a stall/sag is coming. Per our rules, move the profit-
locking stop under the R2.
J = Doji spike Black Volume Bar of Death (pink arrow). R2 retest is
coming. Exit Now! as soon as the next candle turns red. +/- 10
points
Not a bad trade, either way you played it!
[SNIP]
PERSPECTIVE
(Daily, bottom chart)
Thursday taped an inconclusive assault on the Historical S/R (green
line), resulting in a white inverted (Bear) Dragonfly day candle.
Not a very good Bull sign, which actually contra-indicates a more
serious assault on Friday. In fact, it seems doubtful that even the
next lower S/R (green dotted line) will withstand the collapse.
BEWARE OF TRAPS ON FRIDAY!!!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Thursday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic052908.gif
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