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Posted by Asher on July 17, 2008, 11:29 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
[SNIP]
Wednesday was a large-range day, from which we took only a couple of
relatively small bites.
A bit disappointing. Read on.
******************************
E-mini
Wednesday July 16, 2008
Morning session opens gap-up at the Pivot, and reverses to almost
close the opening gap.
1 = Off the Close and through the Pivot, aggressive entry (above the
Pivot, of course) on this 2-bar was warranted. With Price Action
nosing slightly
through the Mid, initial stop advances under the Pivot for reduced At
Risk. A very acceptable Money Management alternative, at the close of
the candle,
is to immediately jump the stop to "free trade".
A = Large white candle through the LowW. Giant Twin Towers (pink
arrow) tells us that a stall/sag or Pivot retest is coming. With the
position in violation
of Pivot Magic Trading Maximum Profit Giveback rules, the trade is in
serious danger. Per PMT stop rules, move profit-locking under the
LowW.
B = Higher-High-Turns-Red. Although the Higher-High is not that much
higher, following a Twin Towers warning, any red on the next candle is
an Exit Now!
Signal. All the more so here! +/- 7.50 points
We don't trade mid-air reversals. This time, with the Primary
objective so obvious (Pivot retest, duh), it is a real moaner and
groaner to have to sit and
watch the move play out!
2 = Pivot holds. 2-bar/J-hook. Volume is not overwhelming, but plenty
strong to confirm.
C = Pulled in on large white candle through the Mid. Jump profit-
locking stop under the Mid for instant "free trade".
D = Huge DVS drives a huge white Marubozu (full-bodied candle with no
wicks) candle through the LowW. Almost definitely this will exhaust
Momentum,
so briskly move profit-locking stop under the LowW and be ready to
exit.
E = The troops do not rally into the hole punched Marubozu sumo
candle. Higher-High-Turns-Red. Exit Now! Cancel-Replace as soon as
the candle shows
red. +/- 7.50 points
[SNIP]
NOTE B: A slew of TELLs (blue arrows. = F) nervously punctuate the
pre-report "silence", edging Price Action
northward, and revealing distinctive Bullish leanings/plans for the
post-FOMC trading.
NOTE C: In classic fashion, Volume dies and you can hear a pin drop
in the last minutes before the 2:00 FOMC minutes.
G = That's it? Moderate 2:00 DVS Volume burst (pink arrow) makes a
full round-trip Price Action swing within a single 5-minute candle.
One more red
candle, on normal Volume, and the train has passed!
[SNIP]
PERSPECTIVE
(Daily, bottom right chart)
Very large-range day tapes a beautiful white candle traversing the
entire Long-term Trend Channel (green channel lines),
closing just shy of the Channel ceiling. Even though Price Action has
closed above the Historical S/R (dotted aqua line,
seemingly re-entering the recently exited LT SW Channel, the dotted
line should be just a drop lower, but I lost the pixel
war with that one), with the S/R and LT Trend Channel ceiling
coinciding, it is reasonable to expect a bearish day on
Thursday, perhaps a breather.
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Wednesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic071608.gif
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