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Posted by Asher on July 2, 2008, 7:55 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
After biting the bullet on an early morning false start, PMTers rode
the roller coaster all the way down,
and most of the way back up, as Tuesday taped a large-range, zero sum
day.
Twas a couple of very juicy trades!
Things are looking "UP" for Wednesday.
******************************
E-mini
Tuesday July 01, 2008
[SNIP]
NOTE: A bit late for that trade, we observe that the ABS today is
once again bloated. To avoid getting
stopped out at every Price adjustment (like we just did!), consider
expanding the Maximum Profit
Giveback and stop placement spacings.
2 = Nice, spike 2-bar Reversal off the Pivot. Higher time frame tape
(10-Minute, bottom left chart) displays a beauty of a red Bear
Dragonfly, confirming our
entry evaluation. Aggressive entry was possible, with stop above the
Close, BTW.
C = Very large red candle/failed test of MA. Non-aggressive entry on
this candle. Per PMT stop rules, move the profit-locking stop above
the MA.
D = Large red candle. Per our rules, move the profit-locking stop
above the high of the candle.
E = Oddly, instead of leaving to drink their lunch, the Bears are
trading madly. Look at that Volume (pink circle).
Large red candle through the Low. Our stop rules say to move the
profit-locking stop above the Low.
F = Large red candle through the S1. Move the profit-locking stop
above the S1.
This was also a 2-candle 123 "S" for latecomers. We relish this
opportunity to add contracts.
G = Gigantic red candle, and our position is now in violation of
Maximum Profit Giveback rules. Mental stop at Giveback level.
H = Large red inverted (Bull) Dragonfly closes just barely through the
S2. Per our rules, move the profit-locking stop above the high of the
candle.
This is also a 2-candle 123, so add contracts, but be aware that this
is also a sign that Momentum may soon fail.
J = Large red candle puts us in Maximum Profit Giveback violation.
Mental stop at the S2/Giveback level. This too is a 2-candle 123. In
the last minute of this
candle was a great time to add contracts.
K = Exhaustion gap and large red candle. Briskly move the profit-
locking stop into the gap. And promptly get stopped out! +/- 15.75
points YES!
[SNIP]
Price Action wobbles, and peters out EOD just a tad up from the Close.
PERSPECTIVE
(Daily, bottom chart)
Very large-range, white, Doji day candle spikes south, for no net
Price increase. Combined with the preceding two
breather days, the tape setup implies a change of direction for
Wednesday. With only half a day trading on Thursday,
any dramatic move wouldn't really require a real commitment to a Bull
assault, so the BBs have nothing to lose!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Tuesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic070108.gif
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