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Commodity and Futures - Physical commodity and financial futures markets.
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Posted by Asher on May 2, 2008, 9:18 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
Nice recovery Thursday, and a nice big PMT bite for us!
TGIF!!!
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Thursday May 01, 2008
[SNIP]
NOTE: The ABS is rather large today so consider expanding the maximum
Profit Giveback,
and perhaps the stop placement spacing as well.
2 = Third Time Through (TTT)/large 123 crosses the Pivot on strong
Volume (purple callout). We are pulled in for an aggressive entry
above the Pivot,
with our initial stop advanced under the Pivot.
Twin Towers DVSs foretells a stall, and that's just what the tape
shows. A long sideways drift buoyed up by the MA. Consider moving a
mental stop to
"free trade" by the 5th candle just in case.
C = Failed test of MA. Per our stop rules (happily) move the profit-
locking stop under the MA.
D = Breakaway gap and second healthy candle closes above the Mid.
Move profit-locking stop under the Mid. (Although we have no rule, as
I have
mentioned before, it is my habit to move the stop into the gap.)
E = Large white candle. Per our rules, move the profit-locking stop
under the low of the candle.
F = DVS (purple callout) tapes a large white candle through the R1/
HighW. This may indicate exhausted Momentum, so take the aggressive
choice and
move the profit-locking stop under the HighW.
Next candle is a Doji with a Black Volume Bar of Death. Prepare to be
taken out at the stop because there will be no time to exit if next
candle is red.
It's not, and the move continues.
G = A large white candle (including the wicks). PMT stop rules say to
move the profit-locking stop under the low of the candle.
H = DVS (purple callout) generates a large white candle. Move the
profit-locking stop under the low of the candle.
J = That's the third DVS (purple callout), warning that Momentum is
very likely exhausted. Stop under the High still leaves the position
in violation of
maximum Profit Giveback rules. Mental stop at Giveback level.
If you were greedy and didn't jump as the next candle assaulted the
mental stop, when the next candle was a puny, white spinning top (=
K), it is clear
that the Bulls are not about to recover. Exit now!
Either way, +/- 14.50 points
The rest of the day travels sideways, out of range of our PLs. By
3:00 it was obviously time to shut down the monitor early and go help
around the house.
PERSPECTIVE
(Daily, bottom right chart)
Somewhat surprisingly, the market seems to be responding positively to
the Fed Faux Pas. Price Action overran the
Historical S/R (dotted green line) Thursday, and appears to be heading
for the next higher S/R level (green line).
Friday will be wild and full of traps. Beware.
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Thursday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic050108.gif
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