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Posted by Asher on August 5, 2008, 11:23 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
On Moveout Monday the Bears headed for the dotted aqua line with a
fierce growl.
They only made it half way to the LT SW Channel floor, but they sure
gave us a ride
for our money (plus ulcers!).
******************************
E-mini
Monday August 04, 2008
1 = Wiz-bang Anomaly (Overnight, bottom left chart) off the LT SW
Channel ceiling (aqua dashed line, now a Primary PL)/Close. Volume
is
booming as well. Aggressive entry still gets us in a bit late on this
monster candle. By the time it completes, initial stop advances to
"free trade"/Maximum Profit Giveback level.
A = Large red candle and our position is once again in violation of
Pivot Magic Trading Maximum Profit Giveback rules.
Mental stop at Giveback level.
B = DVS (pink arrow) generates a red inverted (Bull) Dragonfly
stabbing through the Low, almost to the S1. Per our stop rules,
move
profit-locking stop above the high of the candle. This is a double
sign of failing Momentum, so think Pivot Scalp exit.
C = Large red candle breaches the Low and stretches to tap on the
S1.
Two choices:
* Pivot Scalp exit when the S1 is touched, or immediately as Price
Action recoils.
+/- 6 points (proper risk-conservative choice)
* Per our stop rules, move profit-locking stop above the Low and get
stopped out on next candle.
+/- 4.25 points
[SNIP]
NOTE: The ABS today is again bloated, so, in order to avoid getting
stopped out at every
Price Action swing, expand the Maximum Profit Giveback and stop
placement spacings.
[SNIP]
5 = Lovely, full-sized Double bottom pattern off the S1. Volume
however is still out to lunch. We let it pass, only to watch Price
Action head
for a retest of the aqua dashed line, without giving us a second
chance.
6 = Aqua line tap, and 2-bar "P" Signal.
K = Pulled in on a failed test of MA. Not only is an inverted
Dragonfly not a great continuation sign, but we are still skittish
from our morning
buffeting. Immediately move a stop above the MA.
L = Large red candle (actually, average for today, but we're looking
for any excuse to protect our position). Move the profit-locking stop
down
a drop, above the high of the candle.
N = Giant red candle. Volume continues to build (pink arrow). Our
position is in violation of the PMT Maximum Profit Giveback rules.
Mental
stop at Giveback level.
P = Large red candle through the Low slams against the well-proven
S1. Per our stop rules, move the profit-locking stop above the Low.
EOD
Hiccup Danger time is upon us, so prepare to exit briskly should S1
Support hold.
Q = Support holds. Tape displays a Lower-Low-Turns-White, one of our
classic Exit Now! signals. +/- 6.25 points
[SNIP]
REMEMBER: Trade the tape, not my prognosis!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Monday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic080408.gif
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