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Posted by on January 19, 2007, 7:13 am
BS"D
KISS Daytrading Course
Exploit Pit Pivot Points
Learn to Read the Tape
http://www.TradingThingys.com
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PIVOT MAGIC JOURNAL - LITE
Good morning,
Been a real long week here.
Can really use a Shabbos recharge!
TGIF!!!
Be well and watch out for traps,
=] ;-)>
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Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
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Thursday, January 18, 2007
1 = Morning session opens with a double hit off the recurring
Historical S/R
(light blue line), the "front line". The second hit is also a 2-bar
"P" through
the Pivot. (Notice that the preceding trend is absolutely minimal. The
reversal
is, however, more clear when considered from a higher Time Frame.
See the 10-Min., bottom left chart.)
A = We get pulled in on a giant red candle through the Close (and LT
Trend floor,
green dashed line. See also Daily, bottom right chart, green trend
channel lines.)
NOTE: The Volume is huge (middle chart), giving
Bear Price Action added vigor. Thus, experienced
traders confidently ignored the "green fog" and
entered just below the Close.
(Aggressive Entry: Vol. III. Pivot Magic Trading)
B = Pair of gaps engulf the long, red spinning top. All three are
indications of
early exhaustion. Second red candle closes below the green dashed
line, use this
as an excuse to move profit-locking stop above the green dashes.
C = Giant red candle through the S1. DVS? Another exhaustion symptom?
Uh oh! Problem! More than 2 points of Profits are currently Unsecured.
The
position is in violation of our 2-Point Maximum Profit Giveback rule.
Even if we
apply PMT stop rules aggressively and move profit-locking stop above
the S1, the
Unsecured Profits remain unacceptable.
Rule instructs: Exit Now! With positive slippage: +/- 4.50 points
D = DVS-based, mid-air reversal. Heading back to retest the S1 (and,
as it turns
out, the green dashed line/LT Trend Channel floor). Bull Volume does
not confirm
or justify an entry.
Lunchtime drifts and Price Action trades sideways between the S1 and
LT Trend floor, forever.
E = This probably qualifies for a failed TTT of the green dashes.
Volume comes
to life as the BBs start to come back from drinking lunch (middle
chart). No PMT
signal though. Booo!
2 = 123 "S" continuation through the S1. Second chance to enter the
ongoing move!
Notice that the absolute minimum criteria for a preceding trend exist,
so, this is
also a 2-bar "P". Nice when doubled signals confirm entry!!!
F = Pulled in on healthy red candle. Second red candle closing below
the S1.
Advance initial stop above the S1 for reduced Undefended At Risk.
G = Failed test of MA. Per our rules, move profit-locking stop above
the MA. And
the position is profitable! You may exhale now!!!
H = Large red candle to the S2. DVS (middle chart) informs us that
Momentum is
flagging. Move profit-locking stop above the high of the candle.
Finger on the
mouse, ready to send exit order.
J = Nice long stall at the S2. Surely you exited on the first one.
+/- 2.75 points
PERSPECTIVE
(Daily, bottom right chart)
Price Action is again outside the LT Trend Channel (green lines).
Strong probability that a new, parallel trend will form a notch
lower, for example, dotted green line. Personally, I prefer that
to a full-fledged reversal!
No matter what will be on Friday, beware the traps!!!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Thursday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic011807.gif
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