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Posted by Asher on June 5, 2008, 9:59 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning ,
As we warned yesterday, a
Twister it was! Some hard-earned profits, and lots of gained
confidence,
as our Pivot Magic Trading money management and safety rules kept us
away from traps and disaster.
Be well,
=] ;-)>
******************************
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************
E-mini
Wednesday June 04, 2008
Wednesday opens gap-down, and heads back north into the "green fog",
crossing both the Close and Pivot.
[SNIP]
NOTE: It is already obvious that the Average Bar Size (ABS) is
bloated today.
In order to avoid getting stopped out at every Price Adjustment,
consider
increasing the Pivot Magic Trading Maximum Profit Giveback and stop
placement
spacings.
3 = Continuation "S" 123 off the Pivot, with Volume (pink arrow)
finally in synch. Don't much like the Doji candle that follows,
but . . .
A = DVS (pink arrow) drives a large white candle, pulling us in, and
also permitting us to advance the initial stop under the Mid.
B = Twin Towers (pink arrow) and inverted (Bear) white candle. A
stall/sag/retest is coming. For safety sake, call this a large candle
and move the
profit-locking stop under the low of the candle.
C = Large white candle. Our position is close to Maximum Profit
Giveback violation. Be prepared.
D = DVS (pink arrow) and an inverted (Bear) white Dragonfly. Both are
discouraging signs. To make things worse, our position is now
definitely in
violation of the Maximum Profit Giveback rules. Move profit-locking
stop under the low of the candle, and be prepared to jump ship.
Another, smaller, inverted white Dragonfly displays on the tape, as
forward Momentum skids to a halt.
Exhaustion gap (yet another sign of pending exhaustion), and a simple,
but healthy, white candle (red arrow). Our position is in violation
of Maximum
Profit Giveback rules, this time with not even a creative excuse to
advance our stop. Our rules say to exit immediately, but even if you
didn't, the
instant the next candle (mid-air 1-bar reversal, as it turns out)
shows red - OUT! +/- 4.75 points
NOTE: Three pre-emptive Bear DVSs (= X, blue arrows) comprise what we
call a "TELL".
The BBs are planning a late afternoon Bear assault. Be forewarned!
4 = What appears to be a reversal off the Pivot is only the first
bounce of a larger 123. Gratefully, the lack of Volume confirmation
kept PMT traders
safely on the sidelines.
5 = A large 123 of the Pivot comes to a halt at the Close, and we are
once again spared falling into this trap by our safety rules.
[SNIP]
7 = There we have it. A resounding 123 off the underside of the
Pivot. We need to wait for Price Action to clear the "green fog", or
for Volume to surge
massively, before taking this signal.
E = Huge DVS Volume surge (pink arrow). This, plus the earlier series
of TELLs, bolsters our confidence, and we allow ourselves to be pulled
in the
instant the gigantic red candle clears the fog. Per our PMT stop
rules, initial stop may be advanced above the Close for well-
controlled At Risk.
F = Very large red candle, almost a Bear Dragonfly, puts our position
in serious violation of the PMT Maximum Profit Giveback rules. Mental
stop at
Giveback level.
G = Although the Volume is still DVS, it is trending downward
(lavender line). An exhaustion gap and large, wispy, red spinning-top
candle (stretching
futilely toward the plum line of Historical S/R) warn of failing
Momentum. With our position again in Profit Giveback violation, move
the stop tighter.
As I have mentioned before, it is my personal custom in such
circumstances to move the stop into the gap.
And we are stopped out on the next candle. +/- 4 points Sigh!!!
[SNIP]
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Wednesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic060408.gif
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