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Posted by Dale Legan on June 6, 2006, 11:44 am
Hey Asher, Next time would you make your chart a little bigger on the
HTML page. Old guys like me have a hard time seeing. :-).
Great work...
Thanks.
azlcpa@netmedia.net.il wrote:
> BS"D
>
> RULES AND CAVEATS
>
> Pivot Magic Trading Course
> First rule:
> "...Any time you don't know what is happening, get out!"
>
> http://www.TradingThingys.com
>
>
>
> MARKET IN REVIEW - LITE
> Monday (05 June 2006)
> _____________________
>
> Good morning,
>
> Decent PMT trading, but we didn't get the anticipated
> quick flick up Monday. On the other hand, we did get
> to practice a very important lesson:
>
> REMEMBER: Trade the Tape, Not my Prognostics!
>
> LOL!
>
> ************************
>
>
> Moveout Monday opens gap-down with a neutral test of Pivot Resistance.
> For the next
> hour and a half Price Action first drifted down and then gently back
> north for a
> Pivot retest.
>
> 1 = "P", 2-bar/lower high. The candles are a bit small (not as small
> as they seem
> due to the visual shrinking effect on the charts from the large daily
> range, of course),
> and the Volume indicates that the BBs are taking an early lunch. This
> was a judgment
> call. (Not enough oomph for good ole risk-conservative me.)
>
> For those who took the entry:
> A = Failed test of MA is a good opportunity to reduce Undefended At
> Risk to almost
> zero. Per our rules, move profit-locking stop above the MA.
>
> B = Another failed test of MA. Move profit-locking stop above the MA.
> I'd feel more
> comfortable to move it to "free trade". Again, a judgment call. This
> IS a
> discretionary trading methodology!
>
> C = Marubozu (full-bodied candle without wicks) slams into the S1. This
> is also failed
> test of MA. Move profit-locking stop above the MA.
>
> D = Yet another failed test of MA. Move profit-locking stop above the
> MA.
>
> 2 = The failed test of MA converted to an "S" 123. 13:00 Action Time
> Zone. Nice
> second chance for the more risk-conservative (me!) to enter the ongoing
> move. Those
> who were more daring and entered at = 1 would find this confirmation a
> good
> opportunity to add contracts.
>
> E = Second healthy red candle closes below the S1. Per PMT rules, move
> profit-locking
> stop above the S1.
>
> F = Failed test of MA. Move profit-locking stop above the MA, or, for
> those who entered
> on = 2, consider moving profit-locking stop to "free trade".
>
> The Bear charge covers quite some distance on increasing Volume without
> affording an
> opportunity to tighten our stop.
>
> G = Large Marubozu sumo rips through the S2, slamming against MidW.
> DVS (middle chart)
> encourages the more aggressive stop movement choice. Move
> profit-locking stop above S2.
>
> The DVS turns into a DVS-DVS Reversal, completing with a white Bull
> Dragonfly "P".
> With the stop so nearby, there is no point getting nervous.
>
> Only question is, will we reverse if the move proves?
>
> NOTE: This turns out to be a good example of why I don't
> trust DVS-Signals. In fact, the red DVS was a heroic
> assault on the S2 (not a desperate stretch) and Volume
> resumes bearish. The charge continues south.
>
> H = Giant red candle through the MidW. Move profit-locking stop above
> the MidW
> (aggressive choice).
>
> J = Large red spinning top/Failed test of MA. Move profit locking stop
> above MA.
>
> K = Large red candle through the S3. DVS (middle chart) and proximity
> of EOD hiccup
> Danger Time Zone suggest the more aggressive stop movement choice,
> above the S3 (which
> immediately gets taken out on the next candle! +/-9 points from = 2;
> +/-12.25 points
> from = 1)
>
> The charge actually continues south, only to finally fail at the 50%
> L-T trend
> Retracement level (blue line).
>
> PERSPECTIVE
> (60-Minute, bottom left chart)
>
> Notice the month-long battle waged around the
> 50% Retracement level fulcrum (blue line).
>
> (Daily, bottom right chart)
>
> If Tuesday actually bounces at the 50%
> (blue line), as it appears to have done in
> the early Overnight activity (see the little
> white candle starting to form), this will be
> another higher low and higher High. A
> distinct Bull trend will have been defined
> (green trend-channel lines),
> in spite of the FED!
>
>
> REMEMBER: Trade the Tape, Not my Prognostics!
>
> Asher
> =] ;-)>
> Pivot Magic Trading Course
> http://www.TradingThingys.com
>
>
> Monday's PMT Chart:
> Http://www.TradingThingys.com/PMTJ/PivotMagic060506.gif
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