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Posted by Asher on May 22, 2008, 11:08 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning ,
Called it again! Yesterday's PERSPECTIVE:
"The all-season (24 hour) day candle is a large red candle with a
substantial bottom wick,
almost a Bull Dragonfly. I like to call such a bottom wick "skid
marks". . . anticipate the
forward Momentum to carry them sufficiently south for a test of the
Historical S/R below
(solid green line)."
Actually, it looks more like an assault than a skid, doesn't it?!?
Following such a massive plunge, expect a breather on Thursday, but be
ready for anything!
******************************
E-mini
Wednesday May 21, 2008
[SNIP]
NOTE B: The vertical axis, Price, is 2 points per space, thus
although the candles may appear small,
the ABS is much larger than usual today. This will affect our Maximum
Profit Giveback level (expand
to 3) and our stop placement (1.0); otherwise, we will get stopped
out at every minor adjustment
throughout the day.
[SNIP]
3 = It takes 3 candles to complete this 2-bar within range of the
Pivot. No Price Window tot he proven S1, AND the BBs are still out
drinking lunch.
4 = Second chance 123 at the S1. BBs are still not back, so this is a
low-probability entry. Hold tight.
5 = Another "S" 123. This time on the underside of S1, which is a
much higher probability signal, but the BBs still haven't returned.
G = BBs come back in force (pink arrow) driving the Price Action below
the 1 point of the 123. Just in time to pull us in!!! The large red
candle through
the MidW permits us to advance the initial stop above MidW for instant
profit. My kind of entry!!!
H = Giant red candle puts our position in violation of PMT Maximum
Profit Giveback rules. Mental stop at Giveback level.
J = The S2 Support yields to a 2-candle 123, so add contracts. Giant
red candle slams against the Historical S/R (green line) and our
position is again
in violation of PMT Maximum Profit Giveback rules. Mental stop at
Giveback level.
K = This time, Support at the green line yields to a 123, and we again
add contracts. Giant red candle penetrates the S3. Our position is
instantly in
violation of PMT Maximum Profit Giveback rules. Per our rules, move
profit-locking stop above the S3.
Depending on whether you expanded your stop placement (see NOTE B:
above) or not, you were either now stopped out, +/- 9.50 points (not
bad!),
or stayed in for the longer ride south.
L = Very large red candle. If you were still holding, add contracts
and move the profit-locking stop to the expanded Maximum Profit
Giveback level
(3 points above the close of this candle).
M = Large red spinning top. PMT rules say to move the profit-locking
stop above the high of the candle.
N = The Volume is describing a descending trend of DVSs (lavender
line). As Price Action approaches the next Historical S/R level
(green dotted line)
Momentum is becoming exhausted. Mental stop at Giveback level.
If you are an experienced trader, fearing a retest of S3, you probably
exited as the next, white, candle retraced > 62% of = N. +/- 14.50
points
If not, you gave back the full Maximum Profit Giveback. +/- 13.75
points Still a pretty hearty trade!
[SNIP]
PERSPECTIVE
(Daily, bottom right chart)
Surely, following two powerful Bull days, Price Action will take a
breather at the Historical S/R
(dotted green lines) on Thursday. Probably will retest (and probably
will fail) the solid green
line S/R above.
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/PivotMagic052108.gif
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