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Posted by Asher on March 17, 2008, 11:05 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT
Good morning and a good week,
Once again we called it right (even happier that we scored a whack of
points than I am to have been right). Thursday's PERSPECTIVE read:
"Friday is anybody's guess, but it looks like a set-up to test the
lavender line (Historical S/R and floor of recently exited LT
Sideways Channel)"
Yup!
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
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E-mini
Friday March 14, 2008
1 = Night session ends (Overnight, bottom left chart) with a massive
reversal at the Historical S/R (lavender line) A.K.A.,
the LT SW Channel floor, which leads to a powerful 123 of the Close.
This oddity presented a possible 9:45 AM entry, as a
giant red candle exits the "green fog", with initial stop above the
Close.
Since this Anomaly was truly an anomaly [sic], you may well (read:
risk-conservatively) have waited for a second chance.
2 = Second chance, "S" 2-candle 123 or the Pivot. If you entered on =
1, add contracts.
A = Giant red candle surely put your position in violation of Maximum
Profit Giveback rules. Mental stop at Giveback level.
NOTE: Although it is quite early in the day, ABS so far is enormous.
Thus, to avoid getting
taken out at every Price Action adjustment, consider expanding
Giveback to at least 3 points,
and consider doubling stop distances.
B = Another giant candle. Ideally, you exited when the spike tail of
this inverted (Bull) red Dragonfly pulled back 3 points
from the candle's low. +/- 19 points (from =2) OR +/- 28 points
(from = 1)
Not bad for an oddity!
3 = In case you considered an aggressive entry Reversal of this spike
2-bar, let me remind you that we don't trust the
longevity of 2-bar's driven by DVSs (middle chart. As you can see,
this was a good example of why not!
. . . [SNIP] . . .
PERSPECTIVE
(Daily, bottom right chart)
Friday's retest of the recently exited LT SW Channel floor (lavender
line), which is
also, obviously, Historical S/R, failed. Though the close of the
daily candle was up
a bit, the large white candle from Tuesday has now been completely
retraced (at
least nominally).
Reading the tape makes us a bit afraid that gravity will likely
continue to exert its
pull on Monday. Be prepared!
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/PivotMagic031408.gif
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