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Commodity and Futures - Physical commodity and financial futures markets.
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Posted by Asher on January 24, 2008, 11:11 am
BS"D
KISS Daytrading Course
Learn to Read the Tape
and Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning and welcome back,
In an attempt to fix the mess they made, the Fed overreacts,
dramatically dropping the interest rates, which results in
an almost 70-point range day in the S&P.
We got a few very decent bites, but the enormous Average
Bar Size (ABS) caused some wicked swings, repeatedly
forcing us out mid-move.
Still and all, not a bad day back in the saddle!
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Wednesday January 23, 2008
. . . [SNIP} . . .
NOTE: From the opening candle on, we observe that the ABS today is
huge. Maximum Profit
Giveback will be expanded to at least 3.5 - 4.0 points (and we might
even want to pull our
stops back an additional 0.25-0.50 points as well); Otherwise, we
stand to get stopped out
prematurely on every adjustment.
. . . [SNIP} . . .
5 = This one, on the other hand is a beautiful "P" signal. It invites
aggressive entry
technique above the Pivot. Because it is a large candle through the
Pivot, we are
permitted to advance initial stop under the Pivot. Prepare to Pivot
Scalp exit at the
Close.
H = Volume picks up (middle chart) with a DVS to support entry.
Gigantic white candle
blasts easily through the Close for a TTT (Third Time Through),
converting this from Pivot
Scalp trade to a PMT trade. Our PMT stop rules say to move profit-
locking stop under the
Close.
J = Large white candle violates Giveback rules. Mental stop at
Giveback level.
K = Large white candle through LowW. Per our stop rules, move profit-
locking stop under
the LowW.
L = Huge white candle blasts through the High. Move profit-locking
stop under the High.
M = Large white candle closes at the R1. It is now EOD hiccup Danger
Time. Is this the
end? Briskly move profit-locking stop tight under the low of the
candle (which is also
Giveback level).
N = Large candle through the R1. Move the profit-locking stop under
the R1.
Woops! The next candle, red Bull Dragonfly spikes back through the R1
and takes us out
at our stop. (NOTE: It also forms the V of the Checkmark shaped EOD
hiccup, pink lines)
+/- 34.5 points
Gotta love large-ABS days!!!
PERSPECTIVE
(Daily, bottom chart)
Pair of long-tailed Bull Dragonfly day candles as the
Price Action plunge slides to a stop (thanks to the
Fed's overly extreme reaction!). Thursday's larger
and healthier white Dragonfly implies a reversal/test
of the Historical S/R (green line) is coming.
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/PivotMagic012308.gif
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