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Commodity and Futures - Physical commodity and financial futures markets.
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Posted by Asher on April 3, 2008, 8:03 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
Not surprisingly, after Tuesdays large-range Bull recovery, Wednesday
was a
breather day. Got a couple of bites and a chance to review some
interesting
tapes though!
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Wednesday April 02, 2008
1 = Double bottom (self-confirming pair of signals by nature) blasts
through the Close, exiting the "fog" on strong
(relative to Wed. opening range) Volume (middle chart). This warrants
aggressive entry as the Price Action exits
the "green fog", with initial stop advanced under the Close.
A = Large white candle and our position is in violation of the Pivot
Magic Trading Maximum Profit Giveback rules.
Mental stop at Giveback.
B = Same story as = A, above. Mental stop at Giveback level.
Noticing that this is a sudden DVS (middle chart)
prepare for Momentum exhaustion.
C = Large red Bear Dragonfly spikes for a Higher-High-Turns-Red.
That's an Exit Now! as soon as it shows red.
Do it! No need to giveback ALL of the Giveback just because the rule
permits!!! +/- 4.75 points
Price Action remains elevated, well above the Close, with a nice
couple of mid-air Bear Reversals.
Nothing for us however.
2 = Lunchtime is over, and the BBs are back. Volume (middle chart)
supports this Double bottom "P" off the Close
(self-confirming).
D = Entry on a large white candle, permits us to advance the initial
stop under the High.
E = Albeit a spinning top (not a very positive sign so early in the
move), this is a large candle. Per our PMT stop
rules, move the profit-locking stop under the low of the candle. The
position is now secure, and profitable.
F = Gap (breakaway? the Volume is still steady) and a large white
candle. Per our rules, move the profit-locking
stop under the low of the candle.
G = Scary breather/retrace gives way to a large white candle. Move
the profit-locking stop under the low of
the candle.
H = White inverted (Bear) Dragonfly spike (a bad sign) puts our
position right on the edge of Maximum Profit
Giveback violation. Volume is still steady (middle chart) and a TTT
of the 1380 seems likely. No real desire to
exit yet, so be creative and call this a large candle. Move the
profit-locking stop under the low of the candle.
Whoa! Mid-air Reversal and massive plunge, and we get taken out at
our stop. +/- 3.25 points
3 = Though some of us would hold fast to the PMT rules of engagement
at the Close (including good ole
risk-conservative me), with just about enough time to complete a Pivot
test (about 10 points away), entry is
possible. The tape shows presents us with a powerful 123 of the
Close. Aggressive entry technique gets you
in as Price Action clears the "green fog".
J = Giant DVS-driven (middle chart, not a good sign unless the Bears
follow through immediately) candle puts
the position in serious violation of Maximum Profit Giveback. Mental
stop at Giveback level.
DVS Lower-Low-Turns-White. That's an Exit Now! Pivot test isn't
happening! +/- 4.50 points, for the daring.
EOD Price Action returns to the safety of the fog.
PERSPECTIVE
(Daily, bottom chart)
Following Tuesday's massive surprise burst through the Historical S/R
(green line),
on Wednesday the BBs took a much-needed breather.
Note the tiny Doji day candle.
It's anybody's guess what's coming next, but personally, I'm preparing
a plan for a
retest of the green line, just in case!
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/PivotMagic040208.gif
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