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Commodity and Futures - Physical commodity and financial futures markets.
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Posted by Asher on July 15, 2008, 9:39 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
Just as I "promised" in yesterday's PMTJournal, Monday WAS fun.
Wasn't it?!?
Starting to notice the recurring theme?
Plunging markets =3D Bloated Average Bar Size (ABS).
Adjust for it.
And Tuesday?
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Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Monday July 14, 2008
1 =3D Morning session opens with a kickoff Anomaly from the R1
(Overnight, bottom left chart).
A =3D Entry on large red Bear Dragonfly. Initial stop gets advanced
above the high of the candle.
B =3D Large red candle through the MidW. Per our stop rules, move the
profit-locking stop above the MidW, reducing At Risk almost to zero.
C =3D Small breakaway gap and a large red spinning top. Per our rules,
move the profit-locking stop above the high of the candle.
Alternately, per my custom,
move the profit-locking stop into the gap. And we're in the money!
D =3D Large red candle puts our position in violation of the Pivot Magic
Trading Maximum Profit Giveback rules. Mental stop at Giveback level.
NOTE: As is often the case in a recession, the ABS is bloated. To
avoid getting stopped out at every
Price adjustment, expand the Maximum Profit Giveback and stop
placement spacings.
E =3D Large red candle puts our position in violation of the Pivot Magic
Trading Maximum Profit Giveback rules. Mental stop at Giveback level.
F =3D Large red inverted (Bull) Dragonfly spikes through the Pivot.
Two ways to play this:
ONE
=B7 Exactly at 10:00 Reversal time
=B7 DVS well into the move (pink arrow) implies exhaustion.
=B7 Pivot is a serious PL. Support is likely to hold.
Exit as Price Action crosses back above the Pivot. +/- 9.75 points
TWO
=B7 Per our regular stop rules, move profit-locking stop above the high
of the candle.
=B7 Plan to exit if the Pivot holds again.
=B7 Let profits ride if the Bears continue on through the PL.
Got stopped out on the next candle. +/- 7.75 points
Confusion reigns for the next hour and a half.
[SNIP]
PERSPECTIVE
(Daily, bottom right chart)
For the time being, I've dropped the Historical S/R (LT SW Channel)
lines from the chart. I've done this to emphasize
the most overwhelming characteristic of the Daily chart, the Bear
Trend (green trend channel lines).
[SNIP]
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=3D] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Monday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic071408.gif
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