Daytrading Pivot Points - Thin Line Trend

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Subject Author Date Daytrading Pivot Points - Thin Line Trend azlcpa 12-12-2006
Posted by on December 12, 2006, 7:56 am BS"D Daytrading Course Learn to Read the Tape http://www.TradingThingys.com Pivot Magic Journal - LITE Good morning, One nice thin-line run Monday makes for a short-and-sweet class today. Be wary though, today's FOMC Tuesday!!! Pivot Magic Trading First rule: "...Any time you don't know what is happening, get out!" ****************************** Monday (11 December 2006) ______________________________ 1 = Now there's what I like! An opening range Anomaly (Overnight, bottom left chart and 10-Minute, bottom center left chart) off the Pivot! Confirming Volume is strong and steady (middle chart). We're pulled immediately. A = Second healthy white candle above the Close. Per PMT stop rules, move profit-locking stop under the Close. B = Even the scrawny Bear candle is Bullish! Good sign. More than two points of Unsecured Profits At Risk. Seek to apply 2-Point Maximimun Profit Rule. Perhaps invoke Advanced PMT Scalper 3-5 pre-emptive stop rule and move profit-locking stop to "free trade" plus a couple of ticks? Gap! So late in a fragile, thin-line trend, it probably implies exhaustion rather than a second wind. Get ready. C = Large white candle DVS futher implies imminant exhaustion of Momentum. Think Pivot Scalp exit rules. Meanwhile, per our stop rules, move profit-locking stop under the low of the candle (following a gap, feel free to place it tighter, under the open of the candle for example. This IS discretionary trading!). D = DVS-driven (middle chart, Twin-towers means stall/sag coming), very long-tailed, Bear Dragonfly through the R1. If all that raging Price Action energy made you hesitate to take the Pivot Scalp exit (and the positive slippage that went with it +/-5.0 points), as soon as the Price Action recrossed below the R1 is an Exit Now. JUMP! +/- 4.25 points Not even considering the Reversal option! That lovely Doji Sandwich is DVS-based (middle chart) and therefore unlikely to go far. Volume ebbs as lunchtime begins early. Periodic Bear DVSs don't manage to push Price Action far below the R1. Settle back for a long wait through lunchtime drift for a clean signal off the R1 (which never came). E = Interesting TELL. Mid-lunchtime, some Bears sneaked back and vigorously (middle chart, Volume burst) tried out a late-afternoon assault on the Pivot plan. No, that's not the TELL. I thought it was too. But... F = One single, lone Bull DVS (middle chart) stopped the incursion trial cold and sent Price Action drifting back toward the R1. That's the TELL. The Bears' late-afternoon plan won't succeed. If we know that, the BBs surely do! And thus ends the PMT trading day in the e-mini. PERSPECTIVE (Daily, bottom chart) Though trading was above the lavender line, Price Action didn't manage to clear the current, slightly elevated, plateau of the stair-stepping LT trend (green channel lines). (60-Minute, bottom center right chart) Looks like the overall droop in the trend displayed last week is continuing this week. Let's hope today's FOMC meeting doesn't put the final nail in the coffin! 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/PivotMagic121106.gif Similar Threads Posted Daytrading Pivot Points - Stair-stepping Trend June 16, 2006, 9:39 am Daytrading Pivot Points - Ride the Trend - CHART July 15, 2008, 9:39 am Daytrading Pivot Points - It's TA for Me June 30, 2006, 8:43 am Daytrading Pivot Points - The "TELL" November 15, 2006, 9:47 am Daytrading Pivot Points - Going Down?!? - PIC March 27, 2008, 8:49 am Daytrading Pivot Points - What Just Happened? - PIC February 26, 2008, 9:31 am Daytrading Pivot Points - Anomalies - PIC March 17, 2008, 11:05 am Daytrading Pivot Points - Big Bites - PIC February 1, 2008, 9:24 am Daytrading Pivot Points - Blame the Fed? May 18, 2006, 8:29 am Daytrading Pivot Points - Fib 50% Support June 6, 2006, 11:19 am