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Posted by Asher on May 31, 2007, 8:52 am
BS"D
Learn to Read the Tape
Exploit Pit Pivot Points
KISS Daytrading Course
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PIVOT MAGIC JOURNAL - LITE
Good morning,
Nice WELCOME BACK PMTERS! day once again.
How'd ya do?
Be well,
=] ;-)>
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Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
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Wednesday, May 30, 2007
1 = Wednesday morning opens with what might have been an Anomaly
(Overnight, bottom left
chart) had it been just a drop closer to the S1. Sigh!
Price Action trades gently up to the Pivot, bounces, retests, and
fails.
2 = Rather sloppy reversal off S1. By the time it completes, there is
no tradable Price
Window (per our PMT criteria) to the Pivot. Still on the sidelines.
X = DVS (middle chart, light blue arrow) spurts through the Pivot,
strong Bear Volume
stops the climb, but results in only minimal net Price change as
Volume drops to
lunchtime levels.
Mid-lunch Bull Volume rally (Middle chart, blue arrow) drives Price
through the "green
fog". Single Bear DVS generates no net Price change and the BBs
return to drinking
lunch.
Although the first burst (light blue arrow) might have been a TELL,
the second, at 12:30,
with a 2-color DVS Twin-towers surely was! Watch for Bull Action
later.
3 = Whopping 2-bar "P" off the Pivot. Volume (middle chart) is
elevated.
A = Although one might have entered earlier, as Price Action briefly
exited the "fog",
this giant white candle through the High followed the signal closely
enough, per our
criterion, to pull us in. Volume (middle chart) is powerful and
supportive. Per our
rules, you may aggressively advance the initial stop under the High.
B = Large white candle edges through the HighW. Move profit-locking
stop under the low
of the candle.
NOTE A: The green arrow, = B, is a not so healthy second
white candle above the R1; however, many traders (like good
ole risk-conservative me) might well have opted to move the
profit-locking stop under the R1.
C = Although there aren't any overly healthy candles evident, with
more than 2 points
of profits exposed, be creative (2-Point Maximum Profit Giveback
Rules) and call it
second candle above the HighW and move the profit-locking stop
tighter, under the HighW.
D = Large white candle through the R2/Failed test of MA. (See NOTE B,
below.)
Aggressively move the profit-locking stop under the R2.
NOTE B: In spite of the obvious Bull Momentum, the stalls
at R2 (pink arrow) and again mid-air (green arrow) both
occurred during EOD hiccup Danger Time. Either might well
have prompted a Risk-conservative Exit Now!
+/-6.0-8.50 points, depending on which!
E = If you are still holding on, this large white candle enables you
to move the
profit-locking stop under the low of the candle.
Price Action stalls, and before the end of the 4:10 candle we exit,
per our rules.
+/- 10 points
PERSPECTIVE
(Daily bottom chart)
The stairstepping trend (climb, plateau, dip, climb, etc.) has
dipped and climbed.
The trend angle seems to be a bit less than optimal (45 degrees,
per Gann) as the rise between plateaus only inches upward each
time.
Looks like a breather day is coming.
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/PivotMagic053007.gif
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