|
Posted by Asher on May 3, 2007, 7:14 am
BS"D
Learn to Read the Tape
Exploit Pit Pivot Points
KISS Daytrading Course
******************************
PIVOT MAGIC JOURNAL - LITE
Good morning,
Good morning,
Yesterday's PERSPECTIVE:
"Today's daily candle looks like the final spike of the dip phase of
the
stairstepping trend... High probability of a wicked assault on the LT
Trend Channel floor..."
Got that right!
More of the same today methinks.
Be well,
=] ;-)>
******************************
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
Wednesday, May 02, 2007
1 = Right out of the gate, a powerful white Bull Dragonfly Anomaly
Signal off the Close
(Overnight, bottom left chart). Normally we're doubly hesitant to
enter off the Close
on an Anomaly Signal, but this "P" is supported very convincingly by
consistent Bull
Volume (middle chart).
A = If you took the signal, = 1, stretch it, and call this a large
white candle through
the R1. Move the profit-locking stop under R1, "free trade" plus!
2 = Second chance to enter the ongoing move. "S" 123 continuation of
the R1. If you are
already in the trade, add contracts!
B = DVS burst (middle chart) generates a giant white candle. Move
profit-locking stop
under the low of the candle. If you entered on =1, here's another
example of a single
large candle instantly putting the position in violation of the 2-
Point Maximum Profit
Giveback Rule. As we have discussed, with no good excuse to advance
the stop and no
desire to exit on a positive surge, use a mental stop. Under no
circumstances give
back more than 2 points!
Price Action stalls for a half hour, but gives no real sign of Bear
dominance.
C = Giant white candle through the R2 justifies our optimism. Per our
rules, move
profit-locking stop under R2.
D = Nasty combination:
* DVS (middle chart) generates a large white candle
(relative to today's ABS). Is Momentum flagging?
Move profit-locking stop under the low of the candle.
* Exhaustion gap. Uh oh!
* DVS (middle chart, blue arrow) only generates a
small inverted (Bear) Dragonfly.
Price Action is so near the R3 that it is hard to imagine the Bulls
giving up without
at least one violent thrust. However, our position is in dangerous
violation of the
2-Point Giveback Rule, and all the above listed items are Exit Now!
symptoms.
Three choices seem apparent:
* Follow the Rule and Exit Now!
* Exit Now! the instant the next candle shows red.
* Creative stop placement - scoot the stop into the
gap, under the low of the candle body.
LOL! In the end, all three have the same final effect.
Exit with +/-5.0 points
OR
+/-7.0 if you entered on = 1
Lunchtime drift takes over, and, except for a dip and tap on R2, Price
Action wafts
sideways to EOD.
E = Doji DVS spikes up for the wild thrust at the R3 that we
logically projected earlier.
3 = Doji Sandwich "P" off the R3. Note the classic Volume pattern
(middle chart). With
R2 proven, the most we see here is a Pivot Scalp possibility.
F = ABS today is rather small, and by the time the move finally proves
there's not really
much time to EOD hiccup Danger Time Zone. I'd let it pass (Good ole
risk-conservative me!).
G = There's the classic checkmark EOD hiccup signature. This time the
Price Action
continued the most current trend of the day (bearish), completing the
R2 test.
PERSPECTIVE
(Daily bottom chart)
Not much to add today. Stairstepping (red lines) seems to
maintain its historical climb, plateau, dip, climb pattern.
Wednesday was the first of the climb elements. Rather
expecting another on Thursday/Friday, testing the LT Trend
Channel floor (green channel lines).
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/PivotMagic050207.gif
|
| Similar Threads | Posted | | How to Read the Tape - Stairstepping LT Trend | February 27, 2007, 8:46 am |
| KISS Pivot Point Trading - Outside the Trend Channel | January 19, 2007, 7:13 am |
| Daytrading Pivot Points - Stair-stepping Trend | June 16, 2006, 9:39 am |
| Daytrading Pivot Points - Thin Line Trend | December 12, 2006, 7:56 am |
| Daytrading Pivot Points - Ride the Trend - CHART | July 15, 2008, 9:39 am |
| Craving Cash? Learn How You Can Cash in on a $10 Bill a Year Industry! | April 13, 2008, 2:57 pm |
| KISS Pivot Point Trading - All or Nothing | December 15, 2006, 7:48 am |
| KISS Pivot Point Trading - Re-evaluate R:R | December 14, 2006, 8:40 am |
| KISS Pivot Point Trading - Couple of Bites | January 11, 2007, 8:48 am |
| KISS Pivot Point Trading - Breakout Conundrum | December 13, 2006, 9:36 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap