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Posted by Asher on January 17, 2008, 10:49 am
BS"D
KISS Daytrading Course
Learn to Read the Tape
and Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
Too much in and out trading for my tastes, but overall,
due to the bloated ABS, Wednesday was a rather profitable
Pivot Magic Trading day.
Be well,
=] ;-)>
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. . . [SNIP] . . .
NOTE: Due to the very large ABS today, even scratch trades
are profitable. This suggests that we expand the Maximum
Profit Giveback to 3 points to avoid getting stopped out
prematurely on every adjustment.
. . . [SNIP] . . .
6 = Full sized Double bottom "P" pattern off the S1. Completes with a
long-tailed
white Bull Dragonfly, a "P" on its own. Volume has perked up (middle
chart) and
the Price Window to the Close is just sufficient for a Pivot Scalp.
H = Entry candle is also a failed test of MA, permitting us to advance
the initial
stop under the MA for controlled At Risk.
J = DVS (middle chart) generates a gigantic white candle TTT (Third
Time Through),
ripping easily through the Close, and exiting the fog. Per our
criterion, Pivot
Scalp thus converts to a PMT Scalp. This candle causes a violation of
Maximum
Profit Giveback rules. Mental stop at Giveback level.
K = Large white candle to the Pivot. Per our PMT stop rules, Advance
profit-locking
stop under the low of the candle and prepare for a Pivot Scalp type
exit if next
candle is at all worrisome.
L = Large white candle through the Pivot. Per our stop rules, move
profit-locking
stop under the Pivot.
BTW, this is a 123 of the Pivot and an opportunity to add contracts.
M = Large white candle, and the position is again in violation of the
Maximum
Profit Giveback rules. Mental stop at Giveback.
As soon as the next candle (large red Marubozu) retraces 62% of the
preceding white
candle, = M, it is clear a Bear reversal signal has formed. No sense
giving back
the full Giveback amount! Exit briskly. +/- 10.75 points
. . . [SNIP] . . .
PERSPECTIVE
(Daily, bottom chart)
Exhaustion gap and weak (relatively) red Bear Dragonfly day candle.
Together, these tend to imply that the Bulls will be attempting a
comeback on Thursday.
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/PivotMagic011608.gif
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