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Posted by Asher on March 10, 2008, 10:16 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT
Good morning and a good week,
Fell into a couple of nice rangy trades Friday.
Looking forward to an interesting week coming up!
Be well,
=] ;-)>
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BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
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E-mini
Friday March 7, 2008
. . . [SNIP] . . .
1 = Session opens gap-down below the S1, with a serious reversal
pattern (Overnight, bottom left chart). The reversal is,
however, mid-air, and we can't take it.
The large white Bull Dragonfly completes a high-Volume (middle chart)
2-candle 123, "S", which we can accept.
Aggressive entry was a possibility, permitting advancement of the
initial stop under the S1.
A = Large white candle pulls us in if we didn't apply aggressive entry
technique. Either way, stop goes under the low of
the candle.
NOTE: We already read large ABS and consider expanding the Maximum
Profit Giveback to 3 points.
By 11:00 the large ABS is well confirmed.
B = DVS (middle chart) drives a giant white candle to close the
opening gap. This is very likely to have exhausted forward
Momentum. The position is in violation of the Maximum Profit Giveback
rules, so place mental stop at Giveback level.
C = Higher-high spikes through the Close, pulls back, and turns-red.
That's an Exit Now! signal.
+/- 9.5 points (aggressive entry) or +/- 7 points (normal entry)
2 = Doji spike Sandwich "P" signal off the Pivot.
D = The distance to the "green fog" was actually sufficient to risk
entry on this large red candle through the Close, with
initial stop above the Close. If you were extra risk-conservative and
waited for Price Action to exit the fog, you could have
entered on the second candle (red arrow) with stop again above the
Close.
E = Large red candle. With today's ABS bloated, this just barely
meets requirements for "large", but with the position in or
close to violation of Maximum Profit Giveback rules, and Volume still
strong (middle chart), we are actively seeking a place
to move profit-locking stop. Move the stop above the high of this
candle.
F = Large red Bear Dragonfly. Same story as E (with the added factor
of an encouraging Bear candle). Per PMT stop
placement rules, move profit-locking stop above the high of the
candle.
G = Very large red candle through the Low. Per our stop rules, move
profit-locking stop above the Low.
H = DVS (middle chart) drives a giant red candle almost to the S1,
violating PMT Maximum Profit Giveback rules. This implies
exhaustion, so think Pivot Scalp Exit at S1. Mental stop at Giveback
level.
Next candle does it, with a gentle tap on S1.
If you took the Pivot Scalp option: +/- 13.75 points (aggressive
entry) or +/- 10 points (normal entry)
Not too shabby either way.
J = If you didn't take the Pivot Scalp option and trusted your stop,
this second red candle closing below the S1 permits you
to move the profit-locking stop above the S1.
3 = Such a beautiful Double Bottom pattern either warned you out, or
you now got taken out at the stop. In terms of a
Reversal entry itself, Volume is still "out to lunch", so we must let
this pass. (Good thing too, as we are saved once again by
our PMT rules!)
. . . [SNIP] . . .
PERSPECTIVE
(Daily, bottom right chart)
What can I say? Price Action plunge continues. Although the tape
setup looks inviting for a
Bull flick to retest the recently-exited LT SW Channel floor, overall,
things are not looking up!
LOL!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Friday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic030708.gif
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