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Posted by Asher on April 2, 2008, 11:33 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
No Long-term Sideways Channel floor TTT on Tuesday. We suckered for a
"bobbing cork" trap
instead, as Price Action fairly leaped to cover a 30-point-range day
session.
Neat maneuver! April fools!!!
What now?
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Tuesday April 01, 2008
. . . [SNIP] . . .
2 = Those who held tight (Bear Volume was relatively low and the dip
short-lived), moved the profit-locking stop under the
MA at this failed test, and then added contracts as Price Action
crossed the R3, with a 2-candle 123. Others, who got taken
out on = B, spotted the surge in Bull Volume (middle chart) and
obvious Bull trend and entered above R3, = C.
NOTE: The strength of the trend overrides our natural hesitation to
enter beyond the
extreme R3, but we of course commit to aggressive stop rule
application, starting with
advancing the initial stop under R3.
D = Large white candle through the Historical S/R (Daily, bottom right
chart, green line). Briskly move Profit-locking stop
under the R3.
E = Our position is in violation of the Maximum Profit Giveback
rules. Volume is still strong, so let's stretch it and call this
white candle "large" and move the profit-locking stop under the low of
the candle.
F = Failed test of MA. Per our rules, move the profit-locking stop
under the MA.
G = Large white candle.
NOTE: Don't be fooled by the small looking candles; it's an illusion
caused by the large
range shown on the tape due to the giant opening gap and continuing up
trend. In fact,
with ABS being so large, we should have expanded the Profit Giveback
and stop spacing
rules a bit by now.
Move profit-locking stop under the low of the candle.
H = Large white candle. PMT stop rules again advise us to move the
profit-locking stop under the low of the candle, or
place mental stop at Giveback, depending how you read it.
J = Failed test of MA. Move profit-locking stop under the MA.
K = Large inverted (Bear) white Dragonfly. Not a very good sign. Per
our rules, move profit-locking stop under the low of
the candle.
L = DVS (middle chart) seconds the warning of Momentum exhaustion.
Nervously call this a large white candle and
moving the profit-locking stop under the low.
M = Notice that the tape displays a larger, third sign of Momentum
exhaustion - every other candle is a Doji. The next,
large, red candle took us out at our stop and completed a mid-air Doji
Sandwich. +/- 12 points
. . . [SNIP] . . .
PERSPECTIVE
(Daily, bottom right chart)
Seems that instead of the expected Bear TTT attempt at the LT SW
Channel floor,
we just witnessed a classic "bobbing cork" trap. BBs, disguised as
Bears, first
pushed the "cork" under the water. Then, suddenly on Tuesday, they
let go.
The "cork" spurted effortlessly out of the water (above the green line
(Historical
S/R). The bobbing cork jumped, covered quite a large range with only
moderate
Volume traded. Nice move for April 1st. Fooled me!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Tuesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic040108.gif
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