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Posted by Asher on April 14, 2008, 8:43 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning and a good week,
Short and sweet commentary today. Friday was a wild bronco to
trade.
The mountain climber adage of move up or fall down, surely has proven
right in the markets!
Be prepared for a possible follow-through on Monday as well.
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Friday April 11, 2008
Friday morning opens gap-down, midway between the S1 and S2, and
travels mostly sideways till mid-lunchtime.
1 = Price Action blips up to test the Historical S/R (Daily, bottom
chart, green line), Support-turned Resistance. This reversal is just
out of range of the
S1, but Support and Resistance traders would have loved this signal.
We wait.
Price Action engages the S2. Volume is somewhat elevated, but very
confused.
2 = Look closely. This is a "P" 2-bar behind the S2. Although we
don't require it, the Volume (middle chart) is strong behind this
move.
A = Large red candle through the S2 pulls us in below the S2, with
permission to advance the initial stop above the S2.
B = Large red candle. Per our PMT stop rules, move the profit-locking
stop above the high of the candle.
NOTE: ABS today is relatively small, which is unfortunate. With no
reason to expand our Maximum Profit Giveback
or stop placement spacing, the swings in the long descent become
treacherous.
C = Failed test of MA. PMT stop rules say to move the profit-locking
stop above the MA.
D = Sudden DVS (middle chart) generates a very large red candle
putting our position in violation of the PMT Maximum Profit Giveback
rules. Mental stop
at Giveback level.
Next candle, white Bull Dragonfly/mid-air reversal, is a Lower-Low-
Turns-White. That's a classic Exit Now! Signal. +/- 4.25 points
If you were amongst those "advanced" traders of little faith in our
Exit Now! Rules, you might have convinced yourself that so close to
the Primary Objective,
S3 and/or the Historical S/R (Daily, bottom chart, lavender line,
previous LT SW Channel ceiling), the Bears surely will at least make
another desperate stab,
and therefore held on, when the next Bear attempt only produced a
small spinning top, we hope you were finally alerted to the error of
your ways and exited
with alacrity!!!
Ultimately, the Price Action did assault both the S3 and the
Historical Support (lavender line), without us.
The mid-air flip-flop at 3:00 gave us a short day. No more possible
PMT trades today. Close the monitor early.
PERSPECTIVE
(Daily, bottom chart)
The vigorous assault on the green line of Historical S/R that we have
been predicting carried all the way to the
lower Historical S/R of the LT SW Channel ceiling (lavender line).
Although following such a large range day the
BBs usually take a breather, don't be surprised if they double up
instead and re-enter the Channel.
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Friday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic041108.gif
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