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Posted by Asher on May 23, 2008, 8:24 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT
Good morning ,
Called it again! Yesterday's PERSPECTIVE:
". . . Expecting a breather on Thursday, but be ready for anything!"
Zero change in Price, small white spinning top day candle, and not a
whole lot to trade.
Enough to chat about Pivot Scalp exits, but not a whole lot of
profit!
TGIF!!!
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E-mini
Thursday May 22, 2008
1 = Session opens at the Close, and flicks down through for a 2-bar/DT
Double bottom. While still in the "green fog" Price Action (and
increased Volume,
pink arrow) tapes a 123 (blue arrow). That makes this a self-
confirming pair. Aggressive entry on this large candle once the Price
Action clearly exits the
Ambush Zone.
NOTE: The vertical axis spacing is just the opposite of Wednesday's.
Every interval is only 0.50 points.
This makes even small candles appear elongated. Thus, for example,
the next (red) candle is only 0.25
point higher than the large entry candle, and that's not enough to
call it a Higher-High-Turns-Red.
B = Failed test of the MA. Per our stop rules, move profit-locking
stop under the MA (or better yet, move it to "free trade").
C = Large white inverted (Bear) Dragonfly. This kind of candle
worries us that there probably will not be enough Momentum to cross
the Pivot. Think Pivot
Scalp exit. Per PMT stop rules, move the profit-locking stop under
the low of the candle.
The next candle, a large white Bull Dragonfly, puts our position in
violation of Pivot Magic Trading Maximum Profit Giveback rules.
Mental stop at Giveback level.
D = DVS (pink arrow) warns that the move is over. Exhaustion gap and
large inverted (Bear) Dragonfly re-enforce this reading of the tape.
Though stretch
falls just short of the Pivot/Historical S/R (green line), the more
conservative traders would have taken a Pivot Scalp exit. +/- 5 points
If not, once Price Action pulled seriously back, most of the
experienced amongst us wisely jumped ship.
In the event that you held on, this candle puts our position again in
violation of Maximum Profit Giveback rules. My habit is to put the
stop in the gap.
2 = Putting it all together, this 2-bar "P" off the Pivot was a
tradable Reversal (+/- 3.25 points).
[SNIP]
4 = The BBs are back from lunch, and Volume picks up for this 2-bar
"P" in range of the Pivot. We are pulled in on the next candle.
G = Giant red candle through the MA/failed test of MA. Per our stop
rules move the profit-locking stop above the MA. At least this one is
going to show
some profit!
H = Large inverted (Bull) red Dragonfly. PMT stop rules say to move
the profit-locking stop above the High of the candle. This skidding
candle and the
well-proven Support at the Close (plus the Volume smells slightly of
Twin Towers, pink arrow) make us think Pivot Scalp exit.
J = Two choices here:
* Large red candle. Move profit-locking stop above the high of the
candle.
* Pivot Scalp exit when the Close is touched. +/- 4.75 points
When the next candle, red spinning top, again taps on the Close most
of those who took the chance and held on were wise enough to exit.
K = If you really needed convincing, when this large spinning top
crossed the PL and pulled back above the Close, surely you knew to
exit!
5 = The Support at the Close is rock hard, and this is a nice "P"
signal. Volume is not nearly enough, however, to drive Price Action
all the way back to the
Pivot, so our rules force us to let it pass.
PERSPECTIVE
(Daily, bottom chart)
The day closes where it opened, for a small, white, Doji breather
day-candle.
Never know with Friday's, but, except for swinging and lots of traps,
the BBs will probably continue to catch their breath.
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/PivotMagic052208.gif
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