|
Posted by Asher on January 28, 2008, 10:00 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning and a good week,
Not exactly the "recovery" one would have expected following
the extreme announcement by the Fed earlier in the week, but
we managed to squeak out a couple of decent trades (and to
observe a few interesting behavior patterns for future use).
Stay tuned!
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Friday January 25, 2008
1 = Right out the gate, an classic Anomaly 2-bar "P" signal off the
R2. (Overnight,
bottom left chart. Notice that it tapes as a powerful red bull
Dragonfly on the
10-Minute [bottom center chart] as well).
Gap breakaway and we are pulled in.
A = large red candle. Per Pivot Magic Trading stop rules, move profit-
locking stop
above the high of the candle.
B = Giant red Marubozu (full-bodied candle without wicks) slams
through the R1. Per
our stop rules, move profit-locking stop above the R1.
NOTE: This is a somewhat weak "S", 2-candle 123 continuation
of the R1. Doubtful we'd feel comfortable to enter on this,
but it is a great opportunity to add contracts.
C = Huge red candle through the High. Moving profit-locking stop
above the High
still leaves the position in violation of our Maximum Profit Giveback
rules. Mental
stop at Giveback level.
Oops! Taken out at the stop. +/- 10.5 points
D = If by some chance you overlooked the Giveback rule in = C, above
(or for an
opportunity for me to discuss a very important danger situation):
Giant red candle through the Close. Move profit-locking stop
above the Close.
Twin Towers Volume pattern (middle chart, red arrow) tells us
that Price Action will now stall. This is reinforced by the
clock; TGIF lunchtime is about to start, and with its sideways
drift.
PMT traders have a serious aversion to dawdling in the "green fog".
The instant the next candle shows white Exit Now!
2 = TTT (Third Time Through) off the Close. Not too keen on entry off
the Close on
an "S" signal (good ole risk conservative me), but if you were more
eager than I,
entry would be on the completion candle, below the Pivot, of course.
3 = Lovely "S" 123 continuation off the Pivot. Entry on the large red
candle permits
us to advance the initial stop above the Mid.
4 = Price Action taps on the S1 and tapes a spinning top Doji.
Another smaller one
follows. From the higher time frame perspective (10-Minute, bottom
center chart) the
tape reads Doji Sandwich. End of move! When the next candle shows
white, suspecting
a Pivot retest, Exit Now!
BTW, although the Bull Double-decker Doji Sandwich was very appealing,
it never proves.
5 = Full-sized 123 through the S1, and we are in again, going south.
E = Large red candle through the Low. Advance profit-locking stop
above the Low.
F = Not quite a Twin Towers, but close. DVS (middle chart) drives
Price Action to tap
on the S2. Momentum is clearly exhausted.
Doubtful?
Take a look at the 10-Minute tape (bottom center chart). Is that a
nasty Doji spike
or what?!?
Even before the next (white) candle completes a 2-bar off the S2, Exit
Now!
+/- 14.25 points
NOTE: Since we know that a DVS-based signal (middle chart)
is not reliable for longevity, we do not consider a reversal
here. Even if we did, the promptly Volume dies off,
underscoring the lack of force behind the retracement.
6 = With only a half hour to EOD Hiccup Danger Time we require
particularly strong
Volume to enter Bullish. The lack of Volume (middle chart) supporting
this 2-bar "P"
(just within range of the S2) kept us on the sidelines for this
somewhat brief foray.
PERSPECTIVE
(Daily, bottom right chart)
Pretty amazing. Even after the Fed's drastic remedy, the market
only just skidded to a stop. Traders weren't sufficiently
convinced; Thus, only a small white candle day on Thursday,
and gentle collapse in confidence on Friday.
Everyone is now waiting to hear if the Fed will drop another 0.25%
off the interest or not. Either way, it will be a false boost (as
opposed to say paying off the bloated national debt or incouraging
production at home. LOL!) in a clearly flailing economy.
Prepare to cash in!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Friday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic012508.gif
|
| Similar Threads | Posted | | Live Emini trading signal demonstration - S&P 500, e-mini, Russell, es, futures, trading, system, forex, day trading, software | November 23, 2007, 7:18 pm |
| S&P E-mini Trading | January 11, 2007, 7:55 pm |
| My e-mini sp trading method | November 18, 2007, 11:57 am |
| Trading hours for e-mini | November 10, 2006, 9:46 pm |
| E-mini Trading Statistics - 09Oct07 - PIC | October 9, 2007, 9:40 am |
| E-mini Trading Statistics - 11Oct07 | October 11, 2007, 11:30 am |
| Trading Statistics - 07Dec07 - E-mini PIC | December 7, 2007, 8:10 am |
| E-Mini Day Trading - For Swingers Only - CHART | May 9, 2008, 9:14 am |
| E-mini Trading Statistics - 10Oct07 - Chart | October 10, 2007, 10:28 am |
| Corn Trading Statistics - 11Dec07 - E-mini - PIC | December 11, 2007, 9:37 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap