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Posted by Asher on September 22, 2008, 11:55 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
CAVEAT:
Now is a good time for paper trading and practice. Read and heed
NOTES A & B, below.
Hopefully, in spite of the traps on Friday, well funded, experienced
PMTers went to the bank happy.
All the rest of us took the warning, kept our ammo dry, watching,
paper trading, and taking notes.
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Friday Sept 19, 2008
1 = Morning session opens gap-up (blue arrow), with what appears to be
an Anomaly behind the R2. (Daily, bottom right chart, day candle
shows a long spike up
above 1290; Overnight, bottom left upper chart, puts the spike on the
last candle before the open. Several candles before that are not
viewable at all. Seemingly,
there was a reversal of serious Bull action. After checking various
sources, I could find none without this same wild final overnight
candle. Obviously, this is a data
input error.)
Unable to feel secure about entering on this half-concealed Anomaly,
but the 2-candle 123 (orange arrow) on very strong Volume (pink arrow)
presents a second
chance for aggressive entry below the R2.
NOTE A: The ABS for several weeks has been bloated. Bloated ABS
conditions, warnings, and precautions continue to apply.
To avoid getting stopped out at every Price adjustment, expand the
Pivot Magic Trading Maximum Profit Giveback (MPG)
and stop placement spacings.
NOTE B: The expanded spacings (NOTE A, above) obviously make for
greater risk exposure. Of course, the profit per minute
potential increases as well. This presents no threat to well-funded
advanced traders, but intermediate traders might wish to
trade less contracts than usual (thus less of your funds are at risk);
whereas beginning PMTers might even elect to sit out the
fireworks. To reflect the ABS, our MPG limit needs to at least as
large as, or larger than, the average candle in order to avoid
sudden-death Price Action swings. That said, let us proceed.
A = Large red candle puts the position in MPG violation. Mental stop
at Giveback level/"free trade" and a tik.
B = Large red candle, again puts our position in MPG violation.
Mental stop at Giveback level.
C = Large red Bull Dragonfly, and once again our position is in MPG
violation. Mental stop at Giveback level.
D = Large red candle puts the position yet AGAIN in MPG violation.
Mental stop at Giveback level.
E = Large red spinning top (exhaustion sign). Either, call this a
weak candle and place the profit-locking stop above the high of the
candle, or call it the second
close below the MidW, with profit-locking stop moving above the MidW.
(Blue arrow, the next candle, also a red spinning top, is a second
exhaustion sign. Price
Action appears to be in a stall/retest mode. If your stop is not yet
above MidW, creatively call these cumulatively a second healthy red
candle below the MidW
and jump the stop down above MidW.)
Taken out at our stop on the next candle. +/- 20 points
F = Observe the Twin Towers DVSs (pink arrow). To PMTers this is a
sure sign of a stall/sag. Having read our course books, in order to
boost confidence in another
of our tape reading vital signs, the BBs dutifully tape a stall/sag.
[SNIP]
PERSPECTIVE
(Daily, bottom right chart)
Most hesitant to comment about the long stretch of the upper wick on
this large, white, inverted (Bear) Dragonfly day candle.
Overall, Price Action is again toying with the band of Historical S/R
from the past two month's LT SW Channel (sort of).
Tend to doubt that even the Fed bailout plan will shore up Price for
very long. That's fine for day trading, but not overly
conducive to long term investing!
REMEMBER: Trade the tape, not my prognosis!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Friday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic091908.gif
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