|
Posted by Asher on March 6, 2008, 7:33 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
In yesterday's PERSPECTIVE section of the Daily Pivot Magic Trading
Journal
we projected: " . . . EOD Hiccup almost closes the gap. That leaves
the BBs
an obvious 'must do' [basic TA teaches us that gaps will get closed!]
for the
open tomorrow . . . "
We sure got that one right!
Mostly, Volume looked like a herd of stampeding zebras all morning
Wednesday,
but we did get one decent (or excellent, depending on how you played
it)
trade once the BBs returned from lunch.
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Wednesday March 5, 2008
. . . [SNIP] . . .
The morning, through lunchtime, Price Action battles madly with the
Resistance-turned-Support at the R1.
B = With Volume rather low, and very confused (middle chart), our PMT
tape reading skills and rules kept us
from several false starts.
2 = When the BBs return from drinking lunch, Volume resumes (middle
chart). Price Action finally crosses below the R1.
A resounding "P" 2-bar/DT Double top through the R1. That's our
signal.
C = Small breakaway gap, and we are pulled in on a monster red candle
through the High. Lovely, because this also
permits us to advance the initial stop above the High for instant
secured profits. My favorite kind of entry scenario!
D = Another gap, and the tape shows us a large red candle, which
enters into the "green fog". Per our rules, move
profit-locking stop directly above the high of the candle or to
Giveback level.
NOTE: This single candle violates our Maximum Profit Giveback rules;
however,
ABS is very healthy today so we expand the Giveback to 3 points.
Thus, when
the next candle turned white and left the fog, you may have exited to
avoid
Maximum Giveback. +/-7.50 points. OR, since the Price Action only
spiked
and immediately dipped back into the fog, you may equally well have
trusted
your mental stop and elected to hang on.
F = Large red candle through the Close. Hate hovering in the fog.
Per PMT stop rules, move profit-locking stop above
the Close. If the tape displays a white candle now and we jump.
F = Huge DVS generates a massive red candle stabbing through the
Pivot, coming to rest atop that PL. Experienced
tape-reading PMTers understand that this push has exhausted the
Momentum.
As soon as the next (Lower-Low-Turns-White) candle crosses back above
the Pivot and turns white we have a classic
Exit Now! +/- 12.50 points
. . . [SNIP] . . .
PERSPECTIVE
(Daily, bottom chart)
Price Action, still balanced atop the floor of the LT Sideways Channel
(lavender channel lines),
has yet to assault the Historical S/R (green line). Unless the Bulls
at least vigorously test the
green line Thursday, per our reading of the Daily tape, Wednesday's
tiny white day candle might
well only be a breather in a TTT attempt at the Channel floor.
Exciting!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Wednesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic030508.gif
|
| Similar Threads | Posted | | Daytrading Pivots - The Most Important Lesson | January 30, 2008, 7:43 am |
| Daytrading Pivots - Fed Patch Leaks! - PIC | February 7, 2008, 11:22 am |
| Daytrading Pivots - Doji Spike Sandwich - PIC | April 11, 2008, 8:53 am |
| Daytrading Pivots - Maximum Profit Giveback Rule - PIC | February 27, 2008, 5:17 am |
| Back in the SW Channel Again! - Daytrading Pivot Points | July 25, 2006, 12:40 pm |
| Daytrading Pivot Points - Turned Back by Congestion | November 29, 2006, 7:41 am |
| Re: Where is the Dow Jones going to close the year at??? | November 15, 2006, 12:48 am |
| Day trading Pivots - Reading the Tape - CHART | January 31, 2008, 11:19 am |
| Pivot Point Trading - Pivots Rule! - Chart | August 16, 2007, 8:40 am |
| You Will Definitely Earn! If Not, Get Your Money Back! | March 1, 2008, 12:18 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap